4) Calculation question (7 marks) Paula is a recent Simon Fraser University graduate with a degree in English and Communication. After graduation she was able to get an entry level job at her local government office. She works Monday through Thursday in the office which leaves Friday and weekends free. She has always been good at English and while at university she helped international students with their English proficiency. Paula always felt that her class schedule and club activities kept her busy. Therefore, she could only help one or two students a week. After graduation, she realized that there is another audience that needs a lot of help to communicate in English, new immigrants. She went to her local community centre and arranged a room booking for Fridays. Paula will help new immigrants with their English speaking skills. She has two options for her business. The first option is to open a business called, "Talk It Up" and hold the sessions on Fridays. "Talk It Up" will be an opportunity for new immigrants to come in for tea and talk sessions. For individuals, she can offer two-hour sessions for $50.00 per person, one day a week. She can tutor 3 people every Friday. Weekly, this works out to $50 per person X 3 people a week = $150 per day. Monthly, it is $150 x 4 weeks or an average of $600. Her rent will be $200 a month. In addition to rent, she also needs to pay $100 a month in insurance and $1200 a year in utilities. For advertising, she can print out flyers to distribute at the local community centres and schools. To print the flyers, it will cost a flat rate of $50 per month. She also must pay Wifi charges of $600 a year. She incurs a $10 charge per month for each person for supplies such as tea/light snacks, writing supplies, and photocopying for work. . . Paula's second option is to create an online tutoring business and explore this business idea instead of opening the physical business. For the online tutoring business, she can upload English language tutoring tutorials, English language exercises and different articles on learning English at home. She has decided that if she pursues this option, she can charge a $12 subscription per month per student and can get 60 students per month. Her costs change because now she does not need to rent a place but instead, her webhosting cost is going to be $600 a year and advertising is still $50 per month. For each student, she does incur a $5 charge for supplies such as workbooks and certificates of completion Paula would like your help to analyze the breakeven point for both options (the physical business and the online business), so she can assess which option is better a) Define and explain break even analysis in units and provide the formula in units (1 mark) b) Provide the break-even analysis, in units, for the physical tutoring business. Please show your work (2 marks) c) Provide the break-even analysis, in units, for the online business idea. Please show your work (2 marks) d) Which option would you say is a better offering for Pauta, If she was to choose one option over the other. Justify your answer based on what your results are and explain why (2 marks)