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Increase in Fee per child: $100

Increase in rent: 1,400 (New Rent - Previous Rent)
Total Increase in Fixed Costs: 3,900 (Rent Increase + Field Trip Costs)

Total Increase in Fixed Costs / Target Number of Children Enrolled = Increase in Fee

$3,900 / 39 = $100

User Motanelu
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1 Answer

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Final answer:

The increase in fee per child is justified by a total increase in fixed costs of $3,900. This increase covers a rise in rent by $1,400 and additional field trip costs. When divided by the target number of children enrolled (39), each child's fee needs to be increased by $100 to accommodate the additional expenses.

Step-by-step explanation:

To calculate the justified increase in the fee per child, we consider the total increase in fixed costs, which includes both the rent increase and additional field trip costs. The increase in rent is $1,400, and when added to the field trip costs, it results in a total fixed cost increase of $3,900. This total increase needs to be distributed among the target number of children enrolled, which is 39 in this scenario.

Dividing the total increase in fixed costs by the number of children gives the per-child increase needed to cover the additional expenses. In this case, the per-child increase is $100.

This approach ensures that the additional costs are fairly distributed among the enrolled children, and the fee increase is directly correlated with the rise in fixed costs. By calculating the increase per child based on the total fixed cost increase and the number of children, the organization can maintain financial sustainability while providing transparency to parents about the reasons behind the fee adjustment.

User PaulDaviesC
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