Professional Exam Prep (PEP) uses a cost-plus model to determine the price it charges students. Specifically, the Company charges cost plus 25% of cost. Fixed costs, including facility rental and instructor compensation, amount to $7,200 per month. PEP incurs variable costs for books and supplies that amount to $62 per student. Monthly, enrollment tends to fluctuate. The following data represent the Company's expectations for the first three months of the current year. Month January February March Total No. of Students 20 30 Total Variable Cost $1,240 Total Fixed Cost $7,200 $1,860 $7,200 50 $3,100 $7,200 100 $ 6,200 $21,600 Based on this information which of the following amounts represents the average price PEP should charge per student for the month of January. Multiple Choice $278.00 $422.00 $527.50 $347.50 x