Breakeven after including the desired profit

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Reference no: EM131280618

A company is offering a 3-day short course. The following are the cost components

a. Reserve a room for three days at a cost of $800/day

b. Hire an instructor at $1000/day and an assistant at $500/day

c. Rent a laptop per student at a cost of $40/day per laptop

d. Print some material at a cost of $25/student

Answer the following and show all of you manual calculations

a) How much does the company need to charge per student to break even if management expects 20 students will sign up

b) If the company would like to make a profit margin of 20% of the total breakeven cost, how much does the company need to charge each student to breakeven after including the desired profit?

c) Suppose that due to competition, the company cannot charge more than $450 per student. How many students do they need to recruit to breakeven and still make their profit as in part (b)?

Reference no: EM131280618

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