Nicholas Cash of Advantage Tennis Coaching (ATC) has received an offer from a top-ranked Australian player, Roger Novac, who wishes to spend two months in the beautiful Queensland weather and have 50 private coaching sessions with Nicholas. If the offer is accepted, Nicholas will need to hire an additional tennis court for a cost of $14,000 for two months. The following data are provided.

Required
a. Calculate the number of tennis coaching sessions required for Nicholas to break even.
b. Draw a graph to show the cost–volume–profit relationships for this special contract for ATC.
c. If Nicholas provides 50 coaching sessions for Roger, what is the amount of profit ATC would achieve?
d. To ensure Roger is happy with the coaching services provided, Nicholas has arranged for a number of aspiring senior players to attend sessions for match play. ATC will pay match players $80 per session. ATC wishes to maintain the same amount of profit with the match players as calculated in (c) above. To achieve this, Nicholas will approach the manager of Tennis Pro Shop and ask for the balls to be provided at no cost. Negotiations will then be required between the Tennyson Tennis Centre manager and Nicholas regarding the fee for the hire of the tennis court. What is the upper limit that Nicholas will be prepared to pay for the hire of the court to maintain the amount of profit calculated in (c) above from 50 sessions.
e. What qualitative factors should Nicholas also consider?

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Coaching session fee Tennis balls per session for Nicholas Tennis balls $600 180 70