Question
Aspire Training recently started a business providing training events for corporations. In order to better understand the profitability of the business, the owners asked you
Aspire Training recently started a business providing training events for corporations. In order to better understand the profitability of the business, the owners asked you for an analysis of cost- what costs are fixed, what costs are variable, and so on, for each training session. You have the following cost information:
Trainer: $16,000 per session | |
Materials: $2,900 per session and $ 30 per attendee | |
Catering Costs (subcontracted): | |
Food: $ 45 per attendee | |
Setup/cleanup: $ 35 per attendee | |
Fixed fee: $7,000 training session |
Aspire Training is pleased with the service they use for the catering and have allowed them to place brochures on each dinner table as a form of advertising. In exchange, the caterer gives Aspire Training a $ 900 discount per session.
Questions:
1. Suppose 120 persons attend the next event. What is Aspire Training's total net cost and the cost per attendee?
2. Suppose instead that 195 persons attend. What are Aspire Training's total net cost and the cost per attendee?
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