Which of the above expenses are variable costs

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Your company is an on-going concern that provides month-long training for various job classifications in electronics assembly, welding, and home electrical repair. The demand is highly seasonal, and you are trying to decide whether to shut down one of your three courses in August. Presently you have only 12 students enrolled in the welding course at $900; the other two are full (30 enrolled at $900). The cost structure of your training center is below:

Air conditioning and lighting: $900/month    Instructor (one per course): $8,400/course

Snacks and drinks: $340/course                School-wide placement officer: $4,000/month

Certification manuals: $260/student                      Temporary admin staff: $1,600/course

Personal professional certificate fee: $140                            Building rent: $3,600 month

a) Which of the above expenses are variable costs?

b) What is the break-point number of customers below which you should shut down?  Should you operate or shutdown? Show your work.

Reference no: EM132592389

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