1-24 A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for busi- ness students. While private tutoring was offered, it was determined that group tutoring before tests in the large statistics classes would be most beneficial. The students rented a room close to campus for $300 for 3 hours. They developed handouts based on past tests, and these handouts (including color graphs) cost $5 each. The tutor was paid $25 per hour, for a total of $75 for each tutoring session. (a) If students are charged $20 to attend the session, many students must enroll for the company how to break even? (b) A somewhat smaller room is available for $200 for 3 hours. The company is considering this possibility, How would this affect the break-even point?

1-24 A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for busi- ness students. While private tutoring was offered, it was determined that group tutoring before tests in the large statistics classes would be most beneficial. The students rented a room close to campus for $300 for 3 hours. They developed handouts based on past tests, and these handouts (including color graphs) cost $5 each. The tutor was paid $25 per hour, for a total of $75 for each tutoring session. (a) If students are charged $20 to attend the session, many students must enroll for the company how to break even? (b) A somewhat smaller room is available for $200 for 3 hours. The company is considering this possibility, How would this affect the break-even point?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.1AP

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