Homework Chapter 1
Due: September 21, 2021
Questions #18 Katherine D’Ann is planning to finance her college education by selling programs at the football games for the State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid to the university for the right to sell these programs for $5 each, how many would she have to sell in order to break even?
Question #19. Katherine D’Ann has become concerned that sales may fall, as the team is on a terrible losing streak, and attendance has fallen off. In fact, Katherine believes she will sell only 500 programs for the next game. It is was possible to raise the selling price of the program and still sell 500, what would the price have to be Katherine to break even by selling 500?
Question # 24. A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for business students. While private tutoring was offered, it was determined that group tutoring before tests in the large statistics classes would be most beneficial. The students rented a room close to campus for $300 for 3 hours. They developed handouts based on past test, and these handouts (including color graphs) cost $5 each. The tutor was paid $25 per hour, for a total of $75 for each tutoring session.
(a) If students are charged $20 to attend the session, how many students must enroll for the company to break even?
(b) A somewhat smaller room is available for $200 for 3 hours. The company is considering this possibility. How would this affect the break-even point?