Question: Custom Training recently started a business providing training events for corporations. In order to better understand the profitability of the business, the owners asked you
Custom Training recently started a business providing training events for corporations. In order to better understand the profitability of the business, the owners asked you for an analysis of costswhat costs are fixed, what costs are variable, and so on, for each training session. You have the following cost information:

| 1. | Select a graph depicting fixed costs, variable costs, and total costs for each training session versus the number of guests.
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| 2. | Suppose 90 persons attend the next event. What is Custom Training's total net cost and the cost per attendee? |
| 3. | Suppose instead that 165 persons attend. What is CustomTraining's total net cost and the cost per attendee. |
| 4. | How should Custom Training charge customers for their services? Explain briefly. |
Trainer: $19,000 per session Materials: $2,700 per session and $38 per attendee Catering Costs (subcontracted): Food: $90 per attendee Setup/cleanup: $30 per attendee Fixed fee: $5,500 training session Custom Training is pleased with the service they use for the catering and have allowed them to place brochures on each dinner table as a form of advertising. In exchange, the caterer gives Custom Training a $1,500 discount per session. O A. Costs Q G acosts Variable costs ixson costs 300 0 100 Number of attendees O B. Costs G Total costs Fixed costs Variable costs 0 100 200 300 Number of attendees O C. Costs Q Total costs Vale costs Fixed costs 0 100 200 300 Number of attendees O D. Costs Total costs viable stests 0 100 200 300 Number of attendees
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