Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kidsduring the summer. A local swim club opens its pool at noon each day, so it is available to rentduring the morning. The cost of renting the pool during the 10-week period for which Hannah andKathleen would need it is $1,700. The pool would also charge Hannah and Kathleen an admis-sion, towel service, and life guarding fee of $7 per pupil, and Hannah and Kathleen estimate anadditional $5 cost per student to hire several assistants. Hannah and Kathleen plan to charge $75per student for the 10-week swimming class.a. How many pupils do Hannah and Kathleen need to enroll in their class to break even?b. If Hannah and Kathleen want to make a profit of $5,000 for the summer, how many pupils dothey need to enroll?c. Hannah and Kathleen estimate that they might not be able to enroll more than 60 pupils. Ifthey enroll this many pupils, how much would they need to charge per pupil to realize theirprofit goal of $5,000?

Breakeven point = Fixed cost / Contribution margin Contribution margin = Selling price - Variable…

Answered: Hannah Byers and Kathleen Taylor are…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 69P: The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon...

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