Break Dance Studios provides dancing lessons to its clients. The company has the following costs and miscellaneous revenue (from snack and clothing sales). They expect to give 10 lessons per day, and are open for 5 days per week, and 50 weeks per year. For interest, their effective tax rate is 8%. What fee per lesson does Break Dance Studios need to charge to make a 20% profit annually before tax ??

DESCIPTION

Administrative salary per month

AMOUNT

Annual rental cost for the dance studio

$1,200

Annual insurance cost

$12,000

Monthly utility cost

$1,000

Labour cost per lesson

Miscellaneous net revenue per lesson

$150

$35

$5