A couple of entrepreneurial business students at the University of The Gambia decided to put their education into practice by developing a tutoring company for business students. While private tutoring was offered, it was determined that group tutoring before tests in the large statistics classes would be beneficial. The students rented a room close to campus for D3000 for 3 hours. They developed handouts based on past tests, and these handouts (including color graphs) cost D50 each. The tutor was paid D250 per hour, for a total of D750 for each tutoring session.
a) If students are charged D200 to attend the session, how many students must enroll for the company to break even?
b) A somewhat smaller room is available for D2000 for 3 hours. The company is considering this possibility. How would this affect the break-even point?
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