Kalyan University conducts a special course on “Computer Applications” for a month during summer. For this, it invites applications from graduates. An entrance test is taken of the candidates and based on the same, a final selection of hundred candidates is made. The entrance test consists of four objective type examinations and is spread over four days with one examination per day. Each candidate is charged a fee of ₹50 for appearing in the entrance text. The following data relates to the past two years:

You are required to compute

(a) the budgeted net revenue if 4,000 candidates are expected to take up the entrance test next year,

(b) the break-even number of candidates, and

(c) the number of candidates to be enrolled if the net income desired is ₹20,000.

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Statement of net revenue from the entrance text for the course on "Computer Applications" Gross revenue (fees collected) Year 1 1,00,000 Year 2 1,50,000 Costs Valuation 40,000 60,000 Question booklets 20,000 30,000 Hall rent at 2,000 per day 8,000 8,000 Honorarium to chief administrator 6,000 6,000 Supervision charges (one supervisor for every 100 candidates at the rate of 50 per day). 4,000 6,000 General administration expenses 6,000 6,000 Total costs 84,000 1,16,000 Net revenue 16.000 34,000