Betsy Willis owns TestTutor, an educational tutoring center in Baytown, Florida. The center offers private tutoring in math, writing, and science. Information about the tutoring sessions is as follows:

Since the company opened five years ago, demand has grown faster than the supply of qualified tutors. Betsy currently has enough tutors to provide only 420 hours of tutoring each week.
Required
a. Can Betsy satisfy customer demand with her current supply of tutors? Why or why not?
b. How should Betsy allocate the currently available tutor hours?
c. What total contribution margin will Betsy earn based on your answer to (b)?
d. Betsy has decided that instead of offering individualized instruction in math and science, she will switch to group sessions. Each math session will accommodate two students, and each science session will accommodate four students. Each student in the group will continue to pay the original session price. All sessions will have a single tutor, but each student will need supplies. How will this change in service delivery affect Betsy's ability to meet demand? How will it change her allocation of tutor hours?
e. Suppose Betsy has enough tutors lined up to provide 600 hours of tutoring each week. However, the building she currently leases has no room for expansion; when fully scheduled, it can accommodate only 420 tutoring hours each week. What is the constrained resource? How can Betsy overcome the constraint to meet the current demand for her services and provide room for future growth?

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Math $34 20 Writing $50 30 Science $25 10 Session price Variable labor costs Variable supplies cost Session length Number of sessions demanded per week 45 minutes 180 90 minutes 260 30 minutes 130