Exam-Companion Ltd is a company that provides expert tutoring to candidates on a range of subjects. Next
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Question:
Exam-Companion Ltd is a company that provides expert tutoring to candidates on a range of subjects. Next year's budget shows the following expected figures:
Accounting | Maths | English | French | |
Expected hours of work | 2,500 | 3,000 | 3,500 | 1,000 |
Charge per hour | sh.400 | sh.500 | sh.450 | sh.350 |
Variable cost per hour | sh.100 | sh.150 | sh.90 | sh.100 |
Fixed costs for the year are expected to be sh.1,986,000.
Required:
- Calculate the total number of hours Exam-Companion Ltd will have to work to break even, assuming the above mix of tutoring hours.
- Calculate the contribution from each subject and in total at break-even point.
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