Assignment

Complete: Case 9A (Middlehurst House) Preview the documentView in a new window In this case, management is presented with several decision options. For this assignment, you are required to provide a two to three single-spaced written memo evaluating options and providing recommendations. The written memo should be properly formatted according to APA guidelines and demonstrate research and critical thinking skills. Evaluations and recommendations should be supported by at least four scholarly sources from the Ashford University Library or other external sources, excluding the textbook. In Question 1, evaluate each decision separately in full detail including calculations, as necessary. The evaluation should be included as part of the memo discussion, not a separate component. Evaluations can be included as appendices, exhibits or figures; however must be properly referenced within the written content. In Question 2, prepare a comprehensive business memo addressing each decision and your recommendation. The memo should be properly formatted as a business memo and formatted according to APA guidelines.

Written Assignment should:

•Demonstrate graduate level work including appropriate research and critical thinking skills.
•Be presented as a business memo (not a question/answer format).
•Incorporate case questions into the overall analysis.
•Follow APA formatting guidelines including title page, reference page and in-text citations.
•Consists of two to three single-spaced pages of content.

CASE 9A - MIDDLEHURST HOUSE

Questions:

1. Look at each decision separately, as incremental to the current situation, and evaluate the marginal profit:

a. If class size is decreased (keeping the same 80 students), what increase in tuition is necessary to keep the current monthly profit level?

b. Without regard to (a), is it profitable to create the new class from the waiting list? Explain.

c. Use the new fee structure as found in (a). Is it profitable to move to smaller class sizes, if new full classes are created and filled to their new maximums using the waiting list? Show calculations.

d. Is a class for infant care profitable if tuition is the same as the proposed class tuition for the 2-to-3 age group?

2. Write a brief memo to Friedman and Compton highlighting any concerns that underlie the analyses you have performed in Part 1.