Setting Price and Quantity to Achieve a Desired Profit Assignment

Shelbourne Physical Therapy provides physical therapy sessions to help individuals recover from injuries, reduce pain and improve mobility. All therapy sessions last 1 hour and take place in Shelbourne's office. Shelbourne currently leases their office. Rent is $120,000 per year, including utilities. Shelbourne is run by their owner, Jess Shelbourne, DPT who handles all the administrative and executive duties. Jess earns a salary of $80,000 per year. The therapy sessions are provided by licensed physical therapists who are hired on a contract basis. Therapists are paid $45 per session. Since Jess is so pleasant to work for, they have no problem finding qualified physical therapists to work for them and thus has an unlimited supply of therapists willing to provide services. Shelbourne's offices are state of the art and have a wide variety of exercise and therapy equipment at the therapists' disposal to use as needed. The lease for the equipment is $4,000 per month. Shelbourne's offices are spacious, and they can accommodate all the business they want just by expanding their hours if need be. 1) Assume that Shelbourne charges $85 per physical therapy session. How many physical therapy sessions do they need to sell every month to break even? 1 2) If Shelbourne performs 500 physical therapy sessions per month, what do they need to charge to break even? 3) If Shelbourne charges $85 per physical therapy session and they want to earn $7,500 per month profit, how many physical therapy sessions do they need to perform every month? 4) If Shelbourne performs 500 physical therapy sessions per month, what do they need to charge to earn $7,500 per month profit