Reference no: EM133085293

Question - Tuition $400 per student Variable costs (tiles, supplies, and so on) 200 per student Fixed costs (advertising, salaries, and so on) 94,000 per year.

Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics.

1. Assume that the projected enrollment for the year is 830 students for the following (considered independently): C2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 6 percent? Increased by 22 percent? (Do not round intermediate calculations.)

2. Assume that the projected enrollment for the year is 830 students for the following (considered independently): C3. What would be the operating profit if variable costs per student decreased by 13 percent? Increased by 19 percent? (Do not round intermediate calculations.)

3.  Assume that the projected enrollment for the year is 830 students for the following (considered independently): C4. Suppose that fixed costs for the year are 7 percent lower than projected, whereas variable costs per student are 9 percent higher than projected. What would be the operating profit for the year? (Do not round intermediate calculations.)