How to write online exam help Memo?


Memo


This memo is written to highlights the main recommendations for improving the profitability for Middlehurst House made by our online exam help researchers. If we look after the present condition we found that the profitability is very low as given below:-
Current Revenue
22600
Adjustments
1100
Current Expenses
21000
Current Profit
500

Besides lower profitability, the other problem is quality of instruction which is also low due to lower teacher to instruction ratio. Now if we improve it as per the instruction given in the case and as per the ratios given below, we found that we need to improve the profitability by 35% for all classes as given below:-
New Class distribution
No. of Classes
Children per class
Total Children
Monthly tuition per children
2 to 3
3
6
20
320
3 to 4
2
8
15
280
4 to 5
2
8
15
280
5 to 6
3
10
30
260





No. of old instructors
6



No. of new instructors
10



Earlier salary per instructor
1600



Increase in salary
6400



Increase in staff benefits
1440



Increment in Total Expense
7840



New Required revenue
30440



Increment in Tuition fees required
35%



 
Now, look on to the other aspects of analysis i.e. the effect of addition of a new class in the age group 5-6 in the profitability from the base case. From the analysis we found that it will increase the profitability to almost more than double i.e. $1103 as given below:-
New Class distribution
No. of Classes
Children per class
Total Children
Monthly tuition per children

2 to 3
2
10
20
320

3 to 4
1
15
15
280

4 to 5
1
15
15
280

5 to 6
3
15
41
260







Total Revenue
25460




Increase in variable supplies
132




Increase in instructor cost
1600




Increase in staff benefits
360




Increase in food costs
165




New Expense
23257




New profit
1103




Now, if the same addition of class will be done after increasing the fees as we saw in first analysis, we found that it will improve the profitability to more than triple i.e. to $1744.94 as shown below:-
New Class distribution
No. of Classes
Children per class
Total Children
Monthly tuition per children
2 to 3
3
6
20
431.0088496
3 to 4
2
8
15
377.1327434
4 to 5
2
8
15
377.1327434
5 to 6
4
10
40
350.1946903





Total Revenue
33941.9469



Increase in variable supplies
132



Increase in instructor cost
1600



Increase in staff benefits
360



Increase in food costs
165



New Expense
31097



New profit
1744.946903




Now, let’s look on to the other aspect i.e. what will happen if the fess for all classes will be kept at same level  i.e. equivalent to first class, we found that it will improve the profit by 7 times as given below:-
Current Revenue
22600



Adjustments
1100



Current Expenses
21000



Current Profit
500








New Class distribution
No. of Classes
Children per class
Total Children
Monthly tuition per children
2 to 3
3
6
20
320
3 to 4
2
8
15
320
4 to 5
2
8
15
320
5 to 6
3
10
30
320





New Revenue
25600



Adjustments
1100



Expenses
21000



New Profit
3500




So the entire analysis shows that the best strategy will be to increase the class of 5 to 6 class from the waiting list and increase the fees of first three age group by 25% since in the case it is given that at the age of 2 to 5 most of the parents support 25% increase whereas from 5 to 6 they do not want any increment. However, in the age group of 2-5 , 50% parents are ready for 50%. Hence, the above recommendations will not only increase profitability but it will also improve the quality and also it is as per the interest shown by the parents.

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