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A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for buisness students. While private tutoring was offered, it was determined that group tutoring before test in large statistic classes would be most benefical. The students rented a room close to campus for $300 for 3 hours. They developed handouts based on past test and these handouts (including color graphs) cost $5 each. The tutor was paid $25 and hour for a total of $75 for each tutoring session.
(a) If students are charged $20 to attend the session, how many students must enroll for the company to break even?
(b) A some what smaller roon is available for $200 for 3 hours. The company is considering this possibility. How would this effect the break even point?
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