Training recently started a business providing training events for corporations. In order to better understand the profitability of the?business, the owners asked you for an analysis of costs?what costs are?fixed, what costs are?variable, and so?on, for each training session. You have the following cost?information:

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Trainer: $16,000 per session

?Materials: $2,900 per session and $33 per attendee

Catering Costs?(subcontracted):

?Food: $50 per attendee

?Setup/cleanup: $26 per attendee

Fixed?fee: $8,000 training session

BigSky Training is pleased with the service they use for the catering and have allowed them to place brochures on each dinner table as a form of advertising. In?exchange, the caterer gives BigSky Training a $1,400 discount per session.

Requirement 2. Suppose 150 persons attend the next event. What is BigSky ?Training's total net cost and the cost per?attendee? ?(Round your answers to the nearest?cent.)

For 150 attendees, the total cost will be ?

and the cost per attendee will be?

.

Requirement 3. Suppose instead that 225 persons attend. What is BigSky ?Training's total net cost and the cost per attendee. ?(Round your answers to the nearest?cent.)

For 225 attendees, the total cost will be?

and the cost per attendee will be?

.

Requirement 4. How should BigSky Training charge customers for their?services? Explain briefly.

BigSky Training should charge customers based on ? Flat fee of $15,000 plus margin for the materials or the number of attendees or the type of event ?

As the number of ? Attendees or events ?

?increase, BigSky Training could offer price discounts because ? ? photo

its fixed costs would be spread over a larger number of attendees. its fixed costs would be spread over the number of events its variable costs would be spread over a larger number of attendees. its variable costs would be spread over the number of events