A group of music graduates planned to set up music classes for their first business. They rented a music studio at the cost of $300 for 3 hours per class. In addition, they spent $5 for each lesson handout. The respective music teacher was paid $25 per hour, for a total of $75 per class

I) Calculate the number of students that must register for the business to achieve break-even, given that each student was charged $20?

II) Assume that the graduates found another alternative music studio at the cost of $200 for 3 hours. Show how this alternative would affect the break-even point.

III) Based on the answers in (i) and (ii), state your suggestion for the music graduates business.