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While BabyCare is currently accomodating 30 babies per month, it is contemplating improving its quality of service or increasing the number of babies it cares for in order to increase profit. Currently, management is trying to determine whether to run its business at a 20-baby maximum or at a 50-baby maximum.

3. Which of the following pieces of information would increase the total cost per baby of running a 50-baby maximum day care center versus a 20-baby maximum day care center. Assume the business runs at full capacity and it is not eligible for any bulk discounts for the month of February.
No bulk discount means that the cost of running per baby will be same immaterial of the number in case they have same availability of material.
(a) At a 20-baby maximum, each baby gets his own toy; at a 50-baby maximum each baby must share his toy with one other baby.
Clearly the cost of 20-baby maximum will be more as cost of one toy will be more than cost of half a toy.
NO

(b) At a 20-baby maximum, BabyCare plans to allot 1 baby food package per baby per day and supply 1 diaper package per baby per week.
So, 1 baby food package has 5 cans per package so costs 2 cans extra or $5*2 extra in amount as compared to normal feed.
Next, 6 diaper per 5 days means 1.2 diaper as against 2 diapers per day would mean a saving of $2.5 * (2-1.2) or $2.
Overall 10-2 or $8 costlier per baby per day.
NO

(c) At a 20-baby maximum, BabyCare will supply 1 package of diapers each week to the babies but no toys. At a 50-baby maximum, the babies' parents will have to supply their own diapers; BabyCare will not supply diapers. BabyCare will, however, supply a Barney's Action toy package to each baby each week.
The comparison is in diapers and toys for each, so let us check the cost in each.
20-baby: 1 package of diapers so $15 + $0 for toys = $15 in a week for one baby apart from regular expense on food. 
50-baby: 1 package of Barney's Action toys, so $20+ $0 for diapers in a week for one baby apart from regular expense on food.
Hence, 50-baby maximum spends $20-$15 extra for a week on a baby.
YES­
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The cost of supplying baby food for the month for BabyCare is more than $7,500.
How is it false?

Total number of days to be served : 20 ( 5 days . 4 weeks)
Number of babies = 30
Total cans needed = 30*3 =90 , hence the cost of baby package needed = 18*25 = 450
Thus, monthly cost = 450*20 = 9000
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1)a)False,since the baby food requires:
30*3=90 cans ,now for 20 days it is
90*20=1800 cans,now each can is of 5$, so total amount is 1800*5=9000,but on 50+ cans it is giving 20% off so final price would be 9000*.8=7200,which is less than 7500
b)True,For babies each baby requires 30*1=30 toys and each one requires 30*2=60 toys,since after 2 weeks new toys are required,so for Barneys toys price per toy is 10$,so total is 600,while for Mighty avenger per toy price is 4$,so total is 240,hence mighty is cheaper than Barneys
c)True,yes after discount we can Mighty avenger toys with a budget<220$

2)B,So here for 400 cans the per can amount is 5$,so total is 400*5=2000$,now with a 20% discount final price is 2000*.8=1600$

3)a)If sharing of toys is there then problem for 50 baby vs 20 baby wouldn't be there.
b)In this case the cost wouldn't increase.
c)If diapers are not supplied at 50 baby then the cost would increase and it will not be offset by giving toys

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carouselambra
The cost of supplying baby food for the month for BabyCare is more than $7,500.
How is it false?

Total number of days to be served : 20 ( 5 days . 4 weeks)
Number of babies = 30
Total cans needed = 30*3 =90 , hence the cost of baby package needed = 18*25 = 450
Thus, monthly cost = 450*20 = 9000

You did not include the 20% off in your calculation. After discount it is 7,200, less than 7,500.
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Question 3 is weird, and I believe the statement 2 missed some information about the plan of 50-baby maximum.

The question asks "which statement would increase the total cost per baby of running a 50-baby maximum versus that of running a 20-baby maximum", which means "compared to the cost of running a 20-baby maximum, which statement would incur a higher cost for running a 50-baby maximum".
Apart from the peculiar use of versus in question stem, just muddying the waters here, statement 2 could be eliminated directly if the plan of 20-baby maximum were the only information provided.
It's not a GMAC style.

In fact, I found the missing part of the statement 2 from other forum:
At a 20-baby maximum, BabyCare plans to allot 1 baby food package per baby per day and supply 1 diaper package per baby per week.
cost for 20 = 25 + 3 = 28
At a 50-baby maximum, BabyCare plans to allot 1 baby food package for every 2 babies per day and supply 2 diaper packages per baby per week.
cost for 50 = 12.5 + 6 = 18.5
Cost for 50 would be lower than cost for 20, and the answer is No.

As premises mention 'each baby gets one toy. New toys are circulated into the playpens every 2 wks and the old toys are discarded', I think we should take consideration of cost of toy per baby per day in both 20-baby maximum or at a 50-baby maximum senerios
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chetan2u
While BabyCare is currently accomodating 30 babies per month, it is contemplating improving its quality of service or increasing the number of babies it cares for in order to increase profit. Currently, management is trying to determine whether to run its business at a 20-baby maximum or at a 50-baby maximum.

3. Which of the following pieces of information would increase the total cost per baby of running a 50-baby maximum day care center versus a 20-baby maximum day care center. Assume the business runs at full capacity and it is not eligible for any bulk discounts for the month of February.
No bulk discount means that the cost of running per baby will be same immaterial of the number in case they have same availability of material.
(a) At a 20-baby maximum, each baby gets his own toy; at a 50-baby maximum each baby must share his toy with one other baby.
Clearly the cost of 20-baby maximum will be more as cost of one toy will be more than cost of half a toy.
NO

(b) At a 20-baby maximum, BabyCare plans to allot 1 baby food package per baby per day and supply 1 diaper package per baby per week.
So, 1 baby food package has 5 cans per package so costs 2 cans extra or $5*2 extra in amount as compared to normal feed.
Next, 6 diaper per 5 days means 1.2 diaper as against 2 diapers per day would mean a saving of $2.5 * (2-1.2) or $2.
Overall 10-2 or $8 costlier per baby per day.
NO

(c) At a 20-baby maximum, BabyCare will supply 1 package of diapers each week to the babies but no toys. At a 50-baby maximum, the babies' parents will have to supply their own diapers; BabyCare will not supply diapers. BabyCare will, however, supply a Barney's Action toy package to each baby each week.
The comparison is in diapers and toys for each, so let us check the cost in each.
20-baby: 1 package of diapers so $6 + $0 for toys = $6 in a week for one baby apart from regular expense on food.
50-baby: 1 package of Barney's Action toys, so $20 + $0 for diapers in a week for one baby apart from regular expense on food.
Hence, 50-baby maximum spends $20-$6 extra for a week on a baby.
YES
­Hi chetan2u,
for the first part even with sharing daycare will have to buy 25 toys which is more tha 20 toys for 20 baby maximum.
can you olease help me with what am I processing incorrectly.

Thanks
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curiousPope

chetan2u
While BabyCare is currently accomodating 30 babies per month, it is contemplating improving its quality of service or increasing the number of babies it cares for in order to increase profit. Currently, management is trying to determine whether to run its business at a 20-baby maximum or at a 50-baby maximum.

3. Which of the following pieces of information would increase the total cost per baby of running a 50-baby maximum day care center versus a 20-baby maximum day care center. Assume the business runs at full capacity and it is not eligible for any bulk discounts for the month of February.
No bulk discount means that the cost of running per baby will be same immaterial of the number in case they have same availability of material.
(a) At a 20-baby maximum, each baby gets his own toy; at a 50-baby maximum each baby must share his toy with one other baby.
Clearly the cost of 20-baby maximum will be more as cost of one toy will be more than cost of half a toy.
NO

(b) At a 20-baby maximum, BabyCare plans to allot 1 baby food package per baby per day and supply 1 diaper package per baby per week.
So, 1 baby food package has 5 cans per package so costs 2 cans extra or $5*2 extra in amount as compared to normal feed.
Next, 6 diaper per 5 days means 1.2 diaper as against 2 diapers per day would mean a saving of $2.5 * (2-1.2) or $2.
Overall 10-2 or $8 costlier per baby per day.
NO

(c) At a 20-baby maximum, BabyCare will supply 1 package of diapers each week to the babies but no toys. At a 50-baby maximum, the babies' parents will have to supply their own diapers; BabyCare will not supply diapers. BabyCare will, however, supply a Barney's Action toy package to each baby each week.
The comparison is in diapers and toys for each, so let us check the cost in each.
20-baby: 1 package of diapers so $6 + $0 for toys = $6 in a week for one baby apart from regular expense on food.
50-baby: 1 package of Barney's Action toys, so $20 + $0 for diapers in a week for one baby apart from regular expense on food.
Hence, 50-baby maximum spends $20-$6 extra for a week on a baby.
YES
­Hi chetan2u,
for the first part even with sharing daycare will have to buy 25 toys which is more tha 20 toys for 20 baby maximum.
can you olease help me with what am I processing incorrectly.

Thanks
­curiousPope
We are looking at cost per baby.
Each baby gets half a toy so cost is half a toy per baby, while for 20-day programme, it is 1 toy per baby.­
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For 3- 1st part: wont cost of 25toys (50 babies share toys) will be more than 20 toys?
chetan2u
While BabyCare is currently accomodating 30 babies per month, it is contemplating improving its quality of service or increasing the number of babies it cares for in order to increase profit. Currently, management is trying to determine whether to run its business at a 20-baby maximum or at a 50-baby maximum.

3. Which of the following pieces of information would increase the total cost per baby of running a 50-baby maximum day care center versus a 20-baby maximum day care center. Assume the business runs at full capacity and it is not eligible for any bulk discounts for the month of February.
No bulk discount means that the cost of running per baby will be same immaterial of the number in case they have same availability of material.
(a) At a 20-baby maximum, each baby gets his own toy; at a 50-baby maximum each baby must share his toy with one other baby.
Clearly the cost of 20-baby maximum will be more as cost of one toy will be more than cost of half a toy.
NO

(b) At a 20-baby maximum, BabyCare plans to allot 1 baby food package per baby per day and supply 1 diaper package per baby per week.
So, 1 baby food package has 5 cans per package so costs 2 cans extra or $5*2 extra in amount as compared to normal feed.
Next, 6 diaper per 5 days means 1.2 diaper as against 2 diapers per day would mean a saving of $2.5 * (2-1.2) or $2.
Overall 10-2 or $8 costlier per baby per day.
NO

(c) At a 20-baby maximum, BabyCare will supply 1 package of diapers each week to the babies but no toys. At a 50-baby maximum, the babies' parents will have to supply their own diapers; BabyCare will not supply diapers. BabyCare will, however, supply a Barney's Action toy package to each baby each week.
The comparison is in diapers and toys for each, so let us check the cost in each.
20-baby: 1 package of diapers so $15 + $0 for toys = $15 in a week for one baby apart from regular expense on food.
50-baby: 1 package of Barney's Action toys, so $20+ $0 for diapers in a week for one baby apart from regular expense on food.
Hence, 50-baby maximum spends $20-$15 extra for a week on a baby.
YES­
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Souravi99
For 3- 1st part: wont cost of 25toys (50 babies share toys) will be more than 20 toys?
chetan2u
While BabyCare is currently accomodating 30 babies per month, it is contemplating improving its quality of service or increasing the number of babies it cares for in order to increase profit. Currently, management is trying to determine whether to run its business at a 20-baby maximum or at a 50-baby maximum.

3. Which of the following pieces of information would increase the total cost per baby of running a 50-baby maximum day care center versus a 20-baby maximum day care center. Assume the business runs at full capacity and it is not eligible for any bulk discounts for the month of February.
No bulk discount means that the cost of running per baby will be same immaterial of the number in case they have same availability of material.
(a) At a 20-baby maximum, each baby gets his own toy; at a 50-baby maximum each baby must share his toy with one other baby.
Clearly the cost of 20-baby maximum will be more as cost of one toy will be more than cost of half a toy.
NO

(b) At a 20-baby maximum, BabyCare plans to allot 1 baby food package per baby per day and supply 1 diaper package per baby per week.
So, 1 baby food package has 5 cans per package so costs 2 cans extra or $5*2 extra in amount as compared to normal feed.
Next, 6 diaper per 5 days means 1.2 diaper as against 2 diapers per day would mean a saving of $2.5 * (2-1.2) or $2.
Overall 10-2 or $8 costlier per baby per day.
NO

(c) At a 20-baby maximum, BabyCare will supply 1 package of diapers each week to the babies but no toys. At a 50-baby maximum, the babies' parents will have to supply their own diapers; BabyCare will not supply diapers. BabyCare will, however, supply a Barney's Action toy package to each baby each week.
The comparison is in diapers and toys for each, so let us check the cost in each.
20-baby: 1 package of diapers so $15 + $0 for toys = $15 in a week for one baby apart from regular expense on food.
50-baby: 1 package of Barney's Action toys, so $20+ $0 for diapers in a week for one baby apart from regular expense on food.
Hence, 50-baby maximum spends $20-$15 extra for a week on a baby.
YES­
It is cost per baby. So incase of 25 toys for 50 babies, cost per baby is cost of half toy(H), while in other case the cost per baby is cost of one toy(O).
Surely O>H, that is cost of one toy is greater than cost of half toy.
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What the hell is question 3 even asking, the first 2 are at least understandable, 3rd completely went over my head.
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Check Chetan2u's explanation to Q3. It's asking you to calculate the per baby cost depending on different conditions.
DonBosco7
What the hell is question 3 even asking, the first 2 are at least understandable, 3rd completely went over my head.
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you have to include the 20% discount since they are buying >50 cans of food (2nd tab) which makes the total amount = 7200$
carouselambra
The cost of supplying baby food for the month for BabyCare is more than $7,500.
How is it false?

Total number of days to be served : 20 ( 5 days . 4 weeks)
Number of babies = 30
Total cans needed = 30*3 =90 , hence the cost of baby package needed = 18*25 = 450
Thus, monthly cost = 450*20 = 9000
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