Reference no: EM13926295

This memo is to provide options and recommendations for the Middlehurst House. Finding cost effective ways has always been the goal while continuing to run the daycare at maximum capacity. Different evaluations have been done for each age group of classes. These evaluation ranges from 2-5 years and 5-6 year olds. Taking into account Mr. Compton's stipulation to only change if Middlehurst House continues to operate at or above the current profit level, the following recommendations were done based on my evaluations. The problem that any daycare center or preschool encounters is a decline in students. If the enrollment dropped to 80 students, what increases would be necessary to stay at the current monthly profit level. Here are the current classroom levels:

Age Group
# of Classes
Kids per Class
Total Children
Monthly Tuition/Child
2 to 3
2
10
20
$320
3 to 4
1
15
15
$280
4 to 5
1
15
15
$280
5 to 6
2
15
30
$260