Answered step by step
Verified Expert Solution
Question
1 Approved Answer
characteristics Tuition Variable costs (tiles, supplies, and so on) Fixed costs (advertising, salaries, and so on) $ 460 per student 270 per student 100,700 per
characteristics Tuition Variable costs (tiles, supplies, and so on) Fixed costs (advertising, salaries, and so on) $ 460 per student 270 per student 100,700 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 $28,500 for the year? C. Assume that the projected enrollment for the year is 850 students for each of the following (considered independently): 1. What will be the operating profit (for 850 students)? 2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 8 percent? Increased by 21 percent? 3. What would be the operating profit if variable costs per student decreased by 12 percent? Increased by 18 percent? 4. Suppose that fixed costs for the year are 6 percent lower than projected, whereas variable costs per student are 7 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 Req C1 Req C2 Reg C3 Req C4 Assume that the projected enrollment for the year is 850 students for the following considered Independently): C2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 8 percent? Increased by 21 percent? (Do not round Intermediate calculations.) decreases by $ 17,400 Sales price decreased by 8 percent: Sales price increased by 21 percent: Operating profit Operating profit fincreases | by
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started