Advantage Tennis Coaching (ATC) has been engaged to provide tennis coaching services to students at a local private girls’ college. ATC has put forward a proposal to the University of Queensland’s School of Human Movement (SHM) to offer students work experience. ATC qualified coaches will plan the coaching program, supervise the SHM students as they implement the training program and attend the Queensland Girls’ Secondary Schools Sports Association competition matches. Following is financial data relating to the proposal.

Required
a. Calculate the approximate number of school tennis players required for Advantage Tennis Coaching to break even on the proposal.
b. Calculate the contribution margin ratio.
c. Calculate the revenue required to earn a profit of $4800.
d. Calculate the decrease in total variable costs necessary to maintain the break-even point calculated in requirement (a) if fixed costs increase by $800. (Also calculate the per unit decrease.)

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Revenue: Season tennis coaching fees per player (payable by College and reimbursed by parents) Season costs (variable per player): Sports drinks ATC logo embossed on school kitbag Season fixed costs - supervision by ATC coaches $100 20 $ 200 120 $6 400