Please Kindly Solve this Question ASAP, Need this Answer Urgent, Please Help,?, Will upvote ? Cecily Good is the director of the Young Minds Childcare Centre and recently hired you as thefinancial controller. You have worked mainly in the for-profit sector as a business analyst forvarious manufacturing companies. This is the first non-profit organization that you have workedfor, and you are excited about the programs and services the centre offers.Cecily is hoping your knowledge of management accounting will help her assess the viability ofeach of the programs that are run through the centre. The centre has three programs:Snuggles, Smart Kids and Mosaic. Snuggles is s program that provides early childcare forchildren age 12 months to 3 years. Smart Kids is an early literacy program for preschoolersage 4 to 5, while Mosaic is a blend of educational and fun after-school programs for kids ages 5-12 years.Cecily has prepared the following analysis of each of the programs at the centre:SnugglesSmart KidsMosaicTotalStudents at capacity254050115Actual number of students243845107Fee per Student per Month300200300Variable cost per Student16050 $95Contribution Margin per Student140150205Total CM per month3,360 $5,700 $9,225 $18,2852,500 $2,174 $1,314 $2,000 $3,478 $Program fixed costs4,3008,800Allocated fixed costs*4,348 $10,000Surplus (Deficit)-Ş222577 -$515*Cecily has allocated facility rent and utilities over the three programs based on student capacity.Cecily's main goal is to breakeven on her costs each year. The centre receives no externalfunding but has been able to maintain operations on a fee-for-usage basis. However, looking atthe above numbers, Cecily is feeling that maybe the Snuggles program is creating an overalldeficit for the center. She has asked you to investigate whether the Snuggles program shouldbe discontinued.Required2. Eric Chang, the head of the Mosaic program, mentioned to Cecily there is a newpotential demand for the afterschool program that exceeds what they are able to serve.Although they are currently under capacity for the Mosaic program, a new schoolopening in the community may change this. He feels that the afterschool program couldbe expanded to 75 kids within the confines of the existing facility if they could hire anew facilitator for $45,000 per year and purchase some desks and furniture for $20,000.The centre normally depreciates capital asset purchases over their useful life. In thiscase, Eric feels the furnishings should last 5 years. Cecily thinks this might be a betteralternative than closing the Snuggles program. What do you think? Show yourcalculations by completing the following projected monthly income statement with thenew data.Young Minds Childcare CentreMonthly Projected Income StatementSnugglesSmart KidsMosaicTotalRevenuesVariable costContribution MarginProgram fixed costsAllocated fixed costsSurplus (Deficit)

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Accepted Answer

Contribution margin is determined by subtracting the variable costs from the sales of the company.…

alternative than closing the Snuggles program. What do you think? Show your calculations by completing the following projected monthly income statement with the new data.