#3.) Given those expenses and an estimated average enrollment of 10 students per class, estimate:

a. The total of our fixed and variable expenses if you were running the maximum number of classes the community center will allow.

b. The amount you'd need to charge each student just to cover your expenses if running the maximum number of classes allowed with an estimated 10 students per class.

c. The fee you think you would need to charge per class if you were running 20 classes a month with 10 students each and you make a small, reasonable profit.

BOTTOM'S UP Goal: Make sales projections for your new company. What to do: You're planning to launch a small cooking school, aimed at local amateur cooks. You want to work out all the kinks and get a following before finding a permanent location. So initially, you'll rent a fully equipped commercial kitchen at your local commu- nity center, which: Accommodates a maximum of 20 students per two-hour lesson. You can rent no more than 5 times per week, for a maximum of 20 classes per month. 1. Calculate financial projections, given the follow- ing information: a. For the first six months, estimate you'll have 10 students per class on average. b. The fully equipped kitchen costs $50 to rent per class. c. For each class, you spend $100 on food and materials. d. You'll hire one part-time helper per class, costing you $36 per class. e. To attract students, you'll spend $200 per month on marketing (an email newsletter, fi- ers, and demonstrations at farmers' mahrets). f. To run your business, you'll spend $50 a month on cloud-based services such as a bill- ing and accounting program, website host- ing, and a class-booking app. g. Your competitors charge $50-$80 per cook- ing class. 2. Determine and show your work: a. Your monthly fixed expenses: the amount you must pay regardless of how many classes you schedule. b. Your per-class expenses: how much each class costs you, regardless of how many students sign up. 3. Given those expenses and an estimated average enrollment of 10 students per class, estimate: a. The total of your fixed and variable expenses if you were running the maximum number of classes the community center will allow. b. The amount you'd need to charge each stu- dent just to cover your expenses if running the maximum number of classes allowed with an estimated 10 students per class. c. The fee you think you would need to charge per class if you were running 20 classes a month with 10 students each and you make a small, reasonable profit