Analysis of budgeting



Analysis of charter school budget budgeting

Q1) Static or flexible budget

The model budget of charter school is considered as flexible in nature on numerous grounds. Initially, the budget of charter school has been created using three diversified level of output i.e. budget is developed on assuming the students would get enrolled on three separate occasion. Secondly, as per the rule of flexible budget, the management of the school as allocated cost on level bases, and finally, management of the school can efficiently use this budget for enhancing and controlling their financial performance (Albercht et al, 2007).

Q2) Total revenue

Administration of the Charter school has formulated this flexible budge for three different categories of student that are (66, 120,100). Further, school with the help of this budget can easily calculate the value of revenue earned from one single student of three categories.

Total revenue per 120 students = Total revenue/no of students = 727567/120

= $6063

Total revenue per 100 students = Total revenue/No of students

= 606306/100

= 6063

Total revenue per 66 student = Total revenue/No of student

= 400162/66

= 6063.06

Q3) Total expense per student

Management of the school, with the help of this budget can easily calculate the total expense done by school on one child using the following formula

Total expense per 120 students = Total expense/No of students

= 542157/120

= $4518

Total expense per 100 students = Total expense/No of students

= 528267/100

= $5283

Total expense per 66 student = Total expense/No of student

= 504654/66

= $7646

Q4) Expenses done on student is necessary

Charter school is recognized for giving excellent and valuable instructive and educational services to its apprentice, and for successful accomplishment of their goals, the school has ensured to provide modern, innovative, and necessary equipments to its entire apprentice population. Thus, expenses bear by the school on its apprentice, and in ensuring that quality education is being provided to all of them, so that they can play an important role in the growth of the country, and can be views as future leaders of the country. For example, expenses bear on hiring new faculty, purchasing new computers, and books will play a vital role in providing excellent education to the students (Kusik & Vargas, 2009).

In the same way, it was also imperative for the school to invest considerable amount on student field trip and other events, as these extracurricular activities plays an important part in enhancing student skills, increasing their confidence level, and in improving their mental and physical health. Moreover, other expenses bear by school management like (Advertising expense, research and development expense and others), will play an important part in enhancing the value of school in the market, in attracting new and potential students, and ensuring successful accomplishment of school vision and mission statement (Moseley, 2005).

Q5)

Breakeven point = Fixed cost/ (profit-variable cost)

Fixed cost for all the level = $458817

Variable cost per unit = $694.5

Revenue per unit = $6063

Contribution margin = 6063-694.5

= $ 5368.5

Breakeven point per student = fixed cost/contribution margin

= 458817/5368.5

Breakeven point = 86 student per ...