Sam’s cousin Dan is over from Australia for the summer on a working visa and has decided to run football coaching days to help him fund his cycling tour of England. He has negotiated with one of Sam’s customers to hire their football pitch and other facilities for the day. He has agreed to pay them £100 for this. Sam also helped him find two qualified coaches, who will run the training sessions for a fee of £160 each. As an incentive to the players, he is going to give each of them a printed T-shirt that will cost him £6 to produce. He decides that he will charge the customers £25 for the day and expects to attract at least 40 players. He would like to know how many players he needs to make a profit.

Required:

a) What are the total fixed costs associated with this venture?

b) What would be the variable costs per player?

c) What would be the contribution per player?

d) What would be the break-even number of players?

e) Ifthe coaching attracts 40 players, what profit will Dan make?