For the Memo assignment, you will assume the role of a business consultant. You need to write a 3-paragraph memo to your client with the following:
– Need to point out the main issues/problems that your client is facing;
– Do an analysis of the issues that you pointed out in the first paragraph;
– Give your recommendation to solve the issues.
Formatting
– Number of pages: 1 or 2 (I will deduct 2 points from memos with more than 2 pages)
– File formats: Microsoft Word or PDF
– Font: Times New Roman, 12 point
– Margins: 1″ on all sides
– Spacing: single spacing
– You may use bullets when you find necessary
– You may include figures or graphs
– Use business formal language with easy-to-understand words and concepts.
– Write in a straightforward and clear way.
IF YOU DO USE SOURCES PLEASE CITE PROPERLY
CASE FOR MEMO 3
Douglas and Pamela Frank are a married couple. They both worked for a railroad company for 30
years. At age 57, Douglas and age 52, Pamela retired and moved to the small town of Ovilla, TX,
which has a population of approximately 3,500 residents. When the Franks moved to the town,
they decided to start a child care business in their home called Nanna’s House.
Nanna’s House is licensed by the state. The state charges an annual fee of $225 to maintain the
license. Insurance is required at a cost of $3,840 annually. The facility is licensed to care for a
maximum of six children. The Franks charge a fee of $800 per month for each child. The monthly
fee is based on a full day of care, from 8:00 a.m. to 4:00 p.m. If additional time is required beyond
4:00 p.m., parents must pay an additional charge of $15 per hour for each child. The couple
provides two meals and a snack for the children. The cost of the meals and snack is $3.20 per child
per day. There are six children currently enrolled.
The facility is very nice. It is an 820 square foot addition to their home that was built in 1964. The
Franks purchased the home and completed the renovations for $79,500 and they believe the
addition has a useful life of 25 years. The facility has a large open space for play, reading, and
other activities. There is a section for sleeping which contains small cots. The facility is equipped
with a small kitchen, two bathrooms and a small laundry area. The daycare increased the Franks’
utility cost by $50 each month.
During the first week of operations, the washer and dryer stopped working. Both appliances were
old and had been used by the couple for many years. The old appliances cost a total of $440. While
a laundry room was not initially a necessity, it became increasingly important for laundering the
soiled clothes of the children, blankets, and sheets. A company nearby, Red Oak Laundry and Dry
Cleaning, can launder clothing for the Franks, including pick-up and delivery, for $52 per month.
Alternatively, the Franks can take clothes to the laundromat once a week, which is three miles
away (one way). The applicable mileage rate is $0.56/mile. They can launder the clothes
themselves at a cost of $8 per week. The self-service alternative does not include detergent or
fabric sheets. The couple would need to purchase these items in order to use the laundromat.
Purchasing laundry supplies in bulk from MegaMart would cost $35 every quarter. The final
alternative is for the Franks to purchase a washer and dryer. The cost of the appliances is: washer
$420 and dryer $380. The additional accessories for both appliances, needed for installation, cost
$43.72. The store will deliver the appliances at a total cost of $35. The cost of installing the
appliances is free. Both appliances are expected to last 8 years. According to the manufacturer the
washer will increase energy costs by $120 per year. The dryer will increase energy costs by $145
per year.
The Franks need some assistance in decision making and evaluation. They have contacted Emily
Smith, their accountant, to provide some advice.
As Emily Smith, prepare a letter to the Franks advising them on their laundry needs. What
is your recommendation and why?
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