Cake It provides baking lessons to students. Its operating costs are as follows:

Rent on facilities $2,200 per month

Advertising $274 per month

Instrument Rent $750 per month

Teaching Instruction $40 per student

Books $5 per student

Other Costs $3 per student

Cake It charges $100 per student per month.

Instructions

(a) Determine the company's break-even point in (1) number of students taught per month and (2) dollars.

(b) Cake It has just received notice that the rent on their facilities will be increasing by $500 per month and the instrument rent will also be increasing $20 per month. (1) Determine the company's break-even point in the number of students taught per month based on the new information. (2) Determine the amount to charge per student assuming that Cake It does not increase the number of students taught.