Micromedia offers computer training seminars on a variety of topics. In the semi
ID: 3201436 • Letter: M
Question
Micromedia offers computer training seminars on a variety of topics. In the seminars, each student works at a PC, practising the skill that the instructor has presented. Micromedia is planning a two-day seminar on the use of Microsoft Excel for BQUA2812. The projected fee for the seminar is $300 per student. The cost of the conference room, instructor compensation, lab assistants and promotion is $4800. Micromedia rents computers for its seminars at a cost of $30 per day. Let x be the number of students who enroll in the seminar.
Calculate the break-even point and include the units.
Micromedia offers computer training seminars on a variety of topics. In the seminars, each student works at a PC, practising the skill that the instructor has presented. Micromedia is planning a two-day seminar on the use of Microsoft Excel for BQUA2812. The projected fee for the seminar is $300 per student. The cost of the conference room, instructor compensation, lab assistants and promotion is $4800. Micromedia rents computers for its seminars at a cost of $30 per day. Let x be the number of students who enroll in the seminar.
Explanation / Answer
Let x be the number of students who enroll in the seminar.
here fixed cost =cost of the conference room, instructor compensation, lab assistants and promotion =4800
and variable cost per student =computer rent for 2 days =30*2 =60
as revenue per student =300
hence break even point x =fixed cost/(revenue -variable cost) =4800/(300-60) =$20