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Middlehurst House Complete: Case 9A Middlehurst House
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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.
An example of a properly formatted business memo can be found at this link http://owl.english.purdue.edu/owl/resource/590/04/.
Week 5 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.
Provide at least four scholarly sources, excluding the textbook.
CASE 9A
–
MIDDLEHURST
HOUSE
Middlehurst House is a daycare center/preschool which operates as a partnership of George
Friedman and Bill Compton. The center is in a city that has a large base of twoincome families
who have a need for quality day care. The two m
en started the center this year. Compton
contributed $40,000 to get the business started
—
to purchase equipment and to operate through
the early months. Friedman, who previously managed another center, is the director of the center
and draws $2,000 per mont
h for his services. Partnership profits and losses, after Friedman’s
salary, are split 75 percent for Compton and 25 percent for Friedman.
Middlehurst House operates from 6 a.m. to 6 p.m., Monday through Friday. It is in a single
building that has a capac
ity limit of 120 children and meets city and state regulations. At present,
the center has six classes, all at maximum sizes, structured as follows:
Class sizes are determined by state law which sets a limit on the number of children per
instructor. The center uses one instructor per classroom.
Tuition is charged monthly. Minor adjustments are made on an individual basis. In October, the
most recent month with data available, revenues were $21,500 ($22,600 less $1,100
adjustments). Monthly revenues should be rather stable since classes are full m
ost of the time.
Expenses for October were:
Salaries for instructors
Middlehurst House Complete: Case 9A Middlehurst House
