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Problem - The operating costs for Rhythm music school is as follows:
Rent on facilities
OMR 2,200 per month
Advertising
OMR 274 per month
Instrument Rent
OMR 750 per month
Teaching Instruction
OMR 40 per student
Books
OMR 5 per student
Other Costs
OMR 3 per student
Rhythm music school charges OMR100 per student per month.
1. Determine the company's break-even point in
i. Number of students taught per month
ii. Amount OMR
2. Rhythm music school has just received notice that the rent on their facilities will be increasing by OMR500 per month and the instrument rent will also be increasing OMR20 per month.
i. Determine the company's break-even point in the number of students taught per month based on the new information.
ii. Determine the amount to charge per student assuming that Rhythm music school does not increase the number of students taught.
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