Order ID:89JHGSJE83839 | Style:APA/MLA/Harvard/Chicago | Pages:5-10 |
Instructions:
HCAD 640 Break-Even and Payback Period Analyses Term Paper
Instructions | |
Maryland Home and Community-Based Services (MHCBS) is considering a major expansion that will enable it to attract a different clientele to its organization. Currently, they serve only 34% of the frail elderly seniors and persons with disabilities in the local area. The new chief executive officer (CEO) would like the organization to expand its revenue stream by investing in a multipurpose center serving healthy seniors by offering them arts and crafts and health and wellness programs. The center will also contain an Internet café offering nutritious breakfast and lunch options.
The CEO has commissioned a needs assessment and the study’s results reveal the following: Approximately 120 seniors in the local community are interested in this center. The CEO expects growth of the aging population to be at least 10% each year. Cost growth across all areas of expenses is expected to rise by 5% each year. The CEO has presented her proposal and financial information to the Board of Directors, and they have advised her that they are in full support of her strategy only if the program is a benefit to the community and if the organization can recoup its investment in five years. The CEO has asked you if this can be achieved. Based on the information presented in the scenario: Calculate break-even and payback period analyses. Use a Microsoft Excel Spreadsheet to show your calculation. Explain, in a 2-4 page memorandum to the CEO, their implications. Provide the discussion in the memorandum (must be in proper Memo format). *At least one (1) cited source is required. Service Line Break Even Analysis Memo The proposed costs to operate this new facility are as follows: Expected Monthly Revenue (Membership Fee): $125 per person Monthly Fixed Costs Utilities: $590 Health/Wellness Staff: $2,500 Arts/Crafts Staff: $2,000 Supplies: $800 Fitness Equipment Maintenance Contract: $200 Variable Costs Monthly Lunch Cost: $25 Monthly Breakfast Cost: $15 Based on the information above, once the minimum threshold of participants is reached, the initial investment to establish the center is $317,880. The organization anticipates that it will generate $46,920 of net revenues in the first year, $68,166 in the second year, $93,404 in the third year, $123,287 in the fourth year, and $158,573 in the fifth year. Perform the break-even analysis to determine how many seniors would need to have a full monthly membership for MHCBS to cover its monthly expenses. Calculate the payback period to determine how long it will take MHCBS to recover its initial investment of establishing the senior multipurpose center. |
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Excellent Quality 95-100%
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Introduction
45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Literature Support 91-84 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met. |
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Average Score 50-85% |
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided. |
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration. |
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met. |
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Poor Quality 0-45% |
37-1 points The background and/or significance are missing. No search history information is provided. |
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration. |
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met |
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HCAD 640 Break-Even and Payback Period Analyses Term Paper |