Question
The manager of an e-learning company identified a new course that they could create and sell for $85 per student. The costs for adding this
The manager of an e-learning company identified a new course that they could create and sell for $85 per student. The costs for adding this new course to their product offering would be: $1,900 per month to lease additional space, $260 per month for insurance, $5,200 per month for support staff, $3,900 per month for sales staff, and variable costs of $3 per student. They can sell to a maximum of 500 students per month.
a. For the company to break-even per month, how many students would have to purchase the course?
Round up to the next whole number
b. If they made a profit of $34,720 last month, how many students purchased the course?
Round up to the next whole number
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