Title: Competency Assessment: (CU2 M3) LLL Class Pricing
Course: SkillsCom BA 223 16.0 > Section: Credit Unit 2 Module 3 - Pricing

The Little Littleton Library will soon be offering children’s classes. The library’s main goal in holding the classes is to fill a need in the local community. There are currently no local activities offered for children on “no school” days, and very few activities on the weekends. The library is not concerned with making a lot of money on the classes; however they cannot afford to lose money on them. If the classes were to make any profit, it will go toward future children’s programs.

The classes will be held in the library basement, which was recently vacated and is not needed for any other purpose, therefore you can consider the “rent” for classroom space is $0.

A well-qualified teacher has already been found. She has agreed to work for the library as an independent contractor at the rate of $20 an hour, if the library will also supply a volunteer to assist her with the children. She will only charge for the actual time spent with the children; however she does have a $50 per day minimum.

The cost of supplies will be $7 per child, per class.

The two class options under consideration are an all-day workshop for non-school days which would run from 8 am to 4 pm, and a once a month Saturday morning class from 9 am to 11 am (although some staff members think maybe it should go until noon). The library staff thinks they might have 20 or so children on a workshop day, but maybe only five to ten for a Saturday morning class.

You have been asked to help determine:

1. An appropriate price for the workshop.
2. An appropriate price for the Saturday morning class.
3. The minimum number of children needed for each of the classes, in order to avoid losing money.

Write a short memo for the library with your recommendations. Explain your reasoning and show any calculations you have made.