Harmony Road Music Company $($HRM$)$ provides instrumental music education to children of all ages. Payment for services comes from

two sources: $(1)$ a contract with Harmony School to provide private music lessons for up to $80$ band students a year $($where a year is $9$

months of education$)$ for a fixed fee of $$122,000,$ and $(2)$ payment from individuals at a rate of $$90$ per month for $9$ months of education

each year. In the $2012-2013$ school year, HRM made a profit of $$2,000$ on revenues of $$212,000$ :

$($Click the icon to view the data.$)$

HRM conducted an activity analysis and found that teaching staff wages and supplies costs are variable with respect

to student$-$months. $($A student$-$month is one student educated for $1$ month.$)$ Administrative staff and facilities costs are fixed within

the range of $1,500-3,000$ student$-$months. At volumes between $3,000$ and $4,500$ student$-$months, an additional facilities charge of

$$4,000$ would be incurred. During the last year, a total of $1,700$ student$-$months of education were provided, $1,000$ of which were

for private students and $700$ of which were offered under the contract with Harmony School.

Read the requirements.

Requirement $1.$ Compute the fixed cost per year and the variable cost per student$-$month using the cost information from the $2012-2013$ year of operations.

Fixed cost per year amount to $$44180.$

Variable cost per student$-$month amount to $$

$2013-2014?$

Total revenues

Variable costs

Total contribution margin

Fixed costs

Profit $($Loss$)$

would HRM require to continue to make a profit of $$2,000$ per year? $($Round the required number of students up to the next whole number.$)$

HRM would require students to continue to make a profit of $$2,000$ per year.