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Can I have some help understanding this please? Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer
Can I have some help understanding this please?
Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic Installation course has the following (tentative) price and cost characteristics. Tuition Variable costs (tiles, supplies, and so on) Fixed costs (advertising, salaries, and so on) 450 per student 220 per student 108, 100 per year Required: a. What enrollment will enable Alameda Tile to break even? b. How many students will enable Alameda Tile to make an operating profit of $57,500 for the year? C. Assume that the projected enrollment for the year is 820 students for each of the following considered independently): 1. What will be the operating profit (for 820 students)? 2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 5 percent? Increased by 22 percent? 3. What would be the operating profit if variable costs per student decreased by 12 percent? Increased by 20 percent? 4. Suppose that fixed costs for the year are 7 percent lower than projected, whereas variable costs per student are 9 percent higher than projected. What would be the operating profit for the year? Complete this question by entering your answers in the tabs below. Reg A Req B Reg C1 Req c2 Req c3 Req C4 What enrollment will enable Alameda Tile to break even? Break-even point students ReqA Req B >Step by Step Solution
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