Ann is a teacher who runs evening computer classes. Running a 10 -week course incurs costs as follows
Task 2 (MLO 2)
Ann is a teacher who runs evening computer classes. Running a 10 -week course incurs costs as follows;
- Rent of class room: €2000
- Insurance: €220
- Advertising: €300
- Supply of training equipment: €60 per student
- Administrative costs: €25 per student
- Printing of class notes and certificates: €25 per student
(a) If she charges €425 per student, how many students need to enroll for her to breakeven?
(b) The maximum number that the room can accommodate is 16. How much profit will Ann make if 16 students enroll?
(c) Ann has the option of taking a second class room on the same terms as above (rent: €2000, insurance: €220. None of the other costs would be affected.) If she were to take up this option, what would her new breakeven number of students be? Give your answer as a whole number.
Hint
Accounts and Finance Assignment HelpBreak even is the point where a business has no loss or profit made. The capital used is the revenue earned. To calculate number of students; add the amount needed for capital divided by the charge per student. Profit calculation- total revenue (payment by 16 student) minus the expenses used....
Break even is the point where a business has no loss or profit made. The capital used is the revenue earned. To calculate number of students; add the amount needed for capital divided by the charge per student. Profit calculation- total revenue (payment by 16 student) minus the expenses used.
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