a. How many pupils do Hannah and Kathleen need to enrell in theirclass to break even?Contribution Margin per unit = Sales per price-Variable Cost per unit3D75-12= 63 per unit%3DBreak-even Volume Fixed Cost/Contribution Margin per unit=D1,700/63 per unit%3D= 26.98 or 27 pupils%3Db. If Hannah and Kathleen want to make a profit of $5,000 for thesummer, how many pupils do they need to enroll?Pupils need to be enrolled = Fixed Cost + Desired ProfitContribution Margin per unit1.700 + 5,000/63 per unit106.3 or 107pupilsc. Hannah and Kathleen estimate that they might not be able to enrolImore than 60 pupils. If they enroll this many pupils, how much wouldthey need to charge per pupil in order to realize their profit goal of$5,0007

Break Even Point (Pupils) = Fixed Cost + Desired Profit / Contribution per unit Selling price per…

= 106.3 or 107pupils Hannah and Kathleen estimate that they might not be able to enroll more than 60 pupils. If they enroll this many pupils. how much would they need to charge per pupil in order to realize their profit goal of

= 106.3 or 107pupils Hannah and Kathleen estimate that they might not be able to enroll more than 60 pupils. If they enroll this many pupils. how much would they need to charge per pupil in order to realize their profit goal of

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

a. How many pupils do Hannah and Kathleen need to enrell in their
class to break even?
Contribution Margin per unit = Sales per price-Variable Cost per unit
3D75-12
= 63 per unit
%3D
Break-even Volume Fixed Cost/Contribution Margin per unit
=D1,700/63 per unit
%3D
= 26.98 or 27 pupils
%3D
b. If Hannah and Kathleen want to make a profit of $5,000 for the
summer, how many pupils do they need to enroll?
Pupils need to be enrolled = Fixed Cost + Desired Profit
Contribution Margin per unit
1.700 + 5,000/63 per unit
106.3 or 107pupils
c. Hannah and Kathleen estimate that they might not be able to enrolI
more than 60 pupils. If they enroll this many pupils, how much would
they need to charge per pupil in order to realize their profit goal of
$5,0007

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