Peterson Management, Inc., is a small firm that sponsors time-management seminars in hotels throughout the country. It sponsors 20 two-day seminars during the year for a tuition fee of $\$ 200$ per student. The following is a budget for a single seminar:

1. Bruce Peterson, owner of the company and the speaker at the seminars, would be pleased with an income of $\$ 4,275$ per seminar. With 20 seminars per year, the company's annual income would be $\$ 85,50 \%$. He is concemed, however, that even seminar may not have 40 participants. Prepare a flexible budget, showing what annual net income would be if $10,20,40$, or 50 people enrolled in each seminar 2. What is the breakeven point per seminar in number of participants?

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Expected enrollment Tuition per person... Revenue per seminar Variable costs: Peterson Management, Inc. Budget Per Seminar Books and handouts ($10 per person). Catering ($25 per person) Fixed costs: Airfare... Hotel rental fee Advertising Other.... Total costs. Expected net income. 40 x $200 $8,000 $ 400 1,000 425 600 1,000 300 $3,725 $4,275