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Currently Colton Horse Academy sells 3,000 horse lessons each year for $100 a lesson. The company is considering a change in its cost structure which
Currently Colton Horse Academy sells 3,000 horse lessons each year for $100 a lesson. The company is considering a change in its cost structure which would change its variable expenses from $30 a lesson to $36 a lesson and fixed costs from $150,000 a year to $100,000 a year. How many total lessons does Colton Horse Academy need to sell in a year under the new cost structure to reach the same operating income as before?
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