If students are charged 20 dollars to attend the session how

O aleh the seminar as this seems to be competitive with other companies in the same business. How many people must attend each of these must seminar for Golden Age to break even? g to find a new ost of produc on A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for busi- ness students. While private tutoring was offered, it was determined that group tutoring before tests in the large statistics classes would be most beneficial. The students rented a room close to campus for $300 for 3 hours They developed handouts based on past 23 succeed in re- even point be? ce her college ootball games st of $400 for ble cost is $3. to the univer . If Katherine h, how many even? oV tests and these handouts (including color graphs) tests, and these handouts (including color graphs) cost $5 each. The tutor was paid $25 per hour. for a total of $75 for each tutoring session. has become team is on a (a) If students are charged $20 to attend the session, how many students must cnroll for the company to break even? (b) A somewhat smaller room is available for $200 for 3 hours. The company is considering this possibility, How would this affect the break-cven ows C ac means WS meins roblem may be point? nan and Bary E. Render. Published by Pearson Learning Solutions Copyright o 2014 by Rearson Learning Solutions pport I Feedback

Solution

(b)

Here fixed cost will be

F= $200+$75 = $275

Let n shows teh number fo students. So variable cost will ne v=$5n. So total cost will be $275+$5n. And since you charged $20 from each students so you will get $20n. That is you will start making profit when

$20n > $275+$n

$20-$5n > $275

$15n > $275

n > 18.33

That is break even point is 19 students.