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Week 5 Group Paper
Q Question 7: Based upon your calculations in Question 6, which services or programs are operating successfully? What appears to be the determining factor in whether the service or program is profitable?
Appaloosa County Day Care Center is a local institutional day care that has a “mission to provide quality, affordable childcare to the residents of the community and surrounding areas” (Irwin, 2010). Affordability is important to the community since they rank in the “lowest 10% of per-capita income within the state” (Irwin, 2010). Most families rely on home day-care with the support from friends and families so they have a negative perception on an institutional day-care setting. The one strength that Appaloosa Daycare has is the ability to operate on a low-profit margin, but not having the directors with an accounting background is reckless and a poor administrative practice. The programs Headstart and School District do not have the numbers to keep the day care running through the next year, but by creating new opportunities Appaloosa could improve their bottom line.