Part 3 Cost-Volume-Prot Analysis {15 marks) A driving school employs a number of casual driving teachers and leases a eet of cars. The driving teachers work exible bows and paid an howl}:r rate. At present the school's pupils nag.r $390 per lesson and the school's cost structure is as follows: Variable cost per lesson $211} Fixed cost per month 513113111] Budgeted sales amount to 2,200 lessens per month. Required (1) |Calculate the school's breakeven point in lessons, the margin of safety, and the monthly prot. (I5 marks} (I) The case driving school is now facing competition from other driving schools. It has become necessary to reduce the selling price by $45. The variable cost per lesson will increase by $15. Calculate the revised monthlvbreakevcn point in lessons, and the number of lessons which must now be sold each month in order to achieve the original budgeted monthly,r prot. (6 marks} (3) Discuss the limitations of CUP analysis. {3 marks)