Question
Crane Journeys Music School provides private music lessons for elementary students. Its operating costs are as follows: Rent on facilities $2,330 per month Advertising $255
Crane Journeys Music School provides private music lessons for elementary students. Its operating costs are as follows:
Rent on facilities $2,330 per month
Advertising $255 per month
Instrument Rent $730 per month
Teaching Instruction $41 per student
Books $5 per student
Other Costs $3 per student
Crane Journeys charges $100 per student per month.
Crane Journeys has just received notice that the rent on their facilities will be increasing by $543 per month and the instrument rent will also be increasing $18 per month. (1) Determine the companys break-even point in the number of students taught per month based on the new information. (2) Determine the amount to charge per student assuming that Crane Journeys does not increase the number of students taught. If Crane Journeys does not want to increase their fees, how many additional students will they need to attract? (Round amount to charge per student to 2 decimal places, e.g. 15.25.)
(1) Break even in number of students taught per month __________ students
(2) Amount to charge per student $ ______________
Additional number of students __________ Students
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