Question

Your accountants tell you that it costs $400 to set up an immunization program at a preschool and immunize one child against polio. it will cost $460 more to immunize 20 more children. what is the cost per child for the first child? what is the cost per child for these additional 20 children? what is the average cost per child? what concepts do these calculations illustrate?

Answer 1

1) cost per child  =  400

2) cost per child for these additional 20 children = 460/ 20 = $ 23

3) the average cost per child = (400 + 460)/ 21 = 860 / 21 = $ 40. 952

4) The above result show that the cost of polio vaccine is less which is only $23. But the setting up immunization program & other necessary associated works have adds up to a higher cost of $ 40. 952. This can be reduced if more nos. of children are involved in the immunization program.

Also, the cost of setting up immunization program will be same for one child or more than one. Only the cost of polio vaccine will vary when the nos. of participating will increase.