Berklee College of Music Company (BCM) provides instrumental music education to children of all ages. Payment for services comes from two sources: (1) a contract with Tiny Tunes School to provide private music lessons for up to 150 band students a year (where a year is 9 months of education) for a fixed fee of $154,500, and (2) payment from individuals at a rate of $115 per month for 9 months of education each year. In the 20122013 school year, BCM made a profit of $6,000 on revenues of $281,000 : (Click the icon to view the data.) BCM conducted an activity analysis and found that teaching staff wages and supplies costs are variable with respect to student-months. (A student-month is one student educated for 1 month.) Administrative staff and facilities costs are fixed within the range of 2,000-2,500 student-months. At volumes between 2,500 and 3,000 student-months, an additional facilities charge of $3,000 would be incurred. During the last year, a total of 2,300 student-months of education were provided, 1,100 of which were for private students and 1,200 of which were offered under the contract with Tiny Tunes School. Requirement 1. Compute the fixed cost per year and the variable cost per student-month using the cost information from the 2012-2013 year of operations. Fixed cost per year amount to $ Variable cost per student-month amount to \$ Requirement 2. Suppose that in 2013-2014 Tiny Tunes School decreased its use of BCM to 100 students (that is, 900 student-months). The fixed contract price of $154,500 was still paid. If everything else stayed as it was in 2012-2013, what profit or loss would be made in 2013-2014? Complete the table below to calculate the profit or loss for 2013-2014 assuming that Tiny Tunes School decreased its use of BCM to 100 students (that is, 900 student-months) but that everything else stayed the same from 2012-2013. Requirement 1. Compute the fixed cost per year and the variable cost per student-month using the cost information from the 2012-2013 year of operations. Fixed cost per year amount to $ Variable cost per student-month amount to $ Requirement 2. Suppose that in 2013-2014 Tiny Tunes School decreased its use of BCM to 100 students (that is, 900 student-months). The fixed contract price of $154,500 was still paid. If everything else stayed as it was in 2012-2013, what profit or loss would be made in 2013-2014? Complete the table below to calculate the profit or loss for 2013-2014 assuming that Tiny Tunes School decreased its use of BCM to 100 students (that is, 900 student-months) but that everything else stayed the same from 2012-2013. Total revenues Berklee College of Music Company (BCM) provides instrumental music education to children of all ages. Payment for services comes from two sources: (1) a contract with Tiny Tunes School to provide private music lessons for up to 150 band students a year (where a year is 9 months of education) for a fixed fee of $154,500, and (2) payment from individuals at a rate of $115 per month for 9 months of education each year. In the 2012-2013 school year, BCM made a profit of $6,000 on revenues of $281,000 : (Click the icon to view the data.) BCM conducted an activity analysis and found that teaching staff wages and supplies costs are variable with respect to student-months. (A student-month is one student educated for 1 month.) Administrative staff and facilities costs are fixed within the range of 2,000-2,500 student-months. At volumes between 2,500 and 3,000 student-months, an additional facilities charge of $3,000 would be incurred. During the last year, a total of 2,300 student-months of education were provided, 1,100 of which were for private students and 1,200 of which were offered under the contract with Tiny Tunes School. Requirement 3. Suppose that at the beginning of 2013-2014 Tiny Tunes School decided not to renew its contract with BCM, and the management of BCM decided to try to maintain business as usual with only private students. How many students (each signing up for 9 months) would BCM require to continue to make a profit of $6,000 per year? (Round the required number of students up to the next whole number.) BCM would require students to continue to make a profit of $6,000 per year. Data table