Accounting Question
Problem 2
St. Louis Sports Center is a nonprofit recreational center that offers three outstanding programs during the summer: sports camp, sports clinic, and sports aftercare. The president of the board of directors, Joseph Javier is concerned about the latest statement of income for the summer programs found below. He asks Controller Jamila Jaden to explain why she is allowing the sports aftercare to continue. Note the Center Director will continue on regardless of the After Care decision. The variable costs and traceable fixed costs (maintenance and Utilities) will be reduced if the cost center can be eliminated.
| Total | Sports Camps | Sports Clinics | Sports Aftercare | |
|---|---|---|---|---|
| Revenue | $931,000 | $267,000 | $406,000 | $258,000 |
| Variable Costs | ||||
| Counselor Salaries | $315,000 | $100,000 | $110,000 | $105,000 |
| Food and Materials | $149,000 | $18,000 | $82,000 | $49,000 |
| Total Variable Costs | $464,000 | $118,000 | $192,000 | $154,000 |
| Contribution Margin | $467,000 | $149,000 | $214,000 | $104,000 |
| Fixed Expenses | ||||
| Center Director * | $115,000 | $32,981 | $50,150 | $31,869 |
| Maintenance Staff (traceable) | $43,000 | $20,200 | $7,700 | $15,100 |
| Utilities (traceable) | $69,900 | $8,700 | $40,600 | $20,600 |
| Allocated Common Fixed Expenses * | $186,200 | $53,400 | $81,200 | $51,600 |
| Total Fixed Expenses | $414,100 | $115,281 | $179,650 | $119,169 |
| Net Operating Income (Loss) | $52,900 | $33,719 | $34,350 | ($15,169) |
| * Allocated Based on Revenue |
- What is the impact on net operating profit for the whole organization and each program if the sports aftercare program is eliminated? YOU MUST UPLOAD YOUR SPREADSHEET IN GOOD FORM USING EXCEL.
- What other factors should Ms. Jaden and Mr. Javier consider?
- List at least five stakeholders that might be impacted. Be specific (for example customers, parents).
- How will these stakeholders be impacted by the decision?
- Some stakeholders are in a better position than others to respond to the impact; what might the organization due to mitigate the negative impacts on these groups?
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
