Question

Organizers of an Internet training session will charge participants $150 to attend. It costs $3000 to reserve the room, hire the instructor, bring in the equipment, and advertise. Assume it costs $25 per student for the organizers to provide the course materials.
a. How many students would have to attend for the company to break even?

b. If the trainers think, realistically, that 20 people will attend, then what price should be charged per person for the organization to break even?

Answer 1

Answer:

Step-by-step explanation:

given that organizers of an Internet training session will charge participants $150 to attend. It costs $3000 to reserve the room, hire the instructor, bring in the equipment, and advertise. Assume it costs $25 per student for the organizers to provide the course materials.

Let us assume x students join.

Then we get revenue = 150 x

costs= fixed costs such as reservation charges, hiring instructor+ variable cost per student

Total cost=3000 +25x

To break even

a) Cost = revenue

$3000 +25x=150x\\125x =3000\\x = 24$

24 students should be enrolled to break even.

b) If 20 people will attend revenue would be

20(u) where u = charge per participant.

cost = 3000+25(20) = 3500

To break even 20u =3500

Or u = 175

So if 20 people attend 175 dollar per participant should be charged to break even.