break even analysis

Project Description:

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


tuition $ 450 per student
variable costs (tiles, supplies, and so on) 270 per student
fixed costs (advertising,salaries, and so on) 86,400 per year

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requirement 1:
what enrollment will enable alameda tile to break even?

no of students
requirement 2:
how many students will enable alameda tile to make an operating profit of $48,600 for the year?

no of students
requirement 3:
assume that the projected enrollment for the year is 820 students for each of the following (considered independently):


(a) what will be the operating profit (for 820 students)? (omit the "$" sign in your response.)

operating profit $

(b) what would be the operating profit if the tuition per student (that is, sales price) decreased by 5 percent? increased by 22 percent? (do not round intermediate calculations. omit the "$" sign in your response.)

operating profit
decreased by 5 percent $
increased by 22 percent $

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(c) what would be the operating profit if variable costs per student decreased by 12 percent? increased by 19 percent? (do not round intermediate calculations. omit the "$" sign in your response.)

operating profit
decreased by 12 percent $
increased by 19 percent $

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(d) suppose that fixed costs for the year are 8 percent lower than projected, whereas variable costs per student are 7 percent higher than projected. what would be the operating profit for the year? (omit the "$" sign in your response.)

operating profit $
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Project Stats:

Price Type: Negotiable

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