Answer: You will be indifferent when the total number of student is 20 (approx).
Explanation:
Let the number of student be x
Total profit from first operation:
= Charge per student × x - rent - salaries - insurance - Students stationary
= 725x - 5,371 - 5,502 - 1,071 - 99x
= 626x - 11,944
Total profit from second operation:
= Charge per student × x - rent - salaries - insurance - Students stationary
= 1169x - 10,110 - 6,928 - 2,339 - 177x
= 992x - 19377
At point of indifference,
Profit from first operation = profit from second operation
626x - 11,944 = 992x - 19377
366x = 7,433
x = 20.30 or 20 (Approx)
Hence, you will be indifferent when the total number of student is 20 (approx).
