Three college students are considering operating a tutoring business in economics. This business would require that they
Question:
Three college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the student recreation center, which pay \($6,000\) per year. A fully equipped facility can be leased at a cost of \($8,000\) per year. Additional costs are \($1,000\) a year for insurance and \($.50\) per person per hour for materials and supplies. Their services would be priced at \($10\) per hour per person.
a. What are fixed costs?
b. What are variable costs?
c. What is the marginal cost?
d. How many students would it take to break even?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
To address the setup for the tutoring business youve described lets break down the costs into fixed ...View the full answer
Answered By
Danish Sohail
My objective is to become most reliable expert for clients. For last 10 years I have been associated with the field of accounting and finance. My aim is to strive for best results and pay particular attention to client needs. I am always enthusiastic to help clients for issues and concerns related to business studies. I can work on analysis of the financial statements, calculate different ratios and analysis of ratios. I can critically evaluate stock prices based on the financial analysis and valuation for companies using financial statements of the business entity being valued with use of excel tools. I have expertise to provide effective and reliable help for projects in corporate finance, equity investments, financial accounting, cost accounting, financial planning, business plans, marketing plans, performance measurement, budgeting, economic research, risk assessment, risk management, derivatives, fixed income investments, taxation, auditing, and financial performance analysis.
78+ Reviews
112+ Question Solved
Related Book For 
Question Posted:
