1) Superior Training offers training workshops on a variety of topics. One such workshop is titled "Introduction to MS Office 2010". The workshop is a two day workshop to be held at a rented facility with access to computer terminals for use by the attendees. Following relevant data is furnished regarding the workshop.
- Cost to rent the facility for 2 days = $1,900 for the building plus $120 per attendee for use of the workstation for both the days.
- Cost to hire an instructor to teach the course = $1,600 plus $50 per attendee for both days.
- Other cost like lab assistant, workshop book, use of AV Equipment etc. is $500 for both the days and does not depend on the number of attendees.
- Superior charges a fee of $600 per attendee for the 2-day workshop.
Answer the following questions:
- Determine the breakeven number of students to enroll before the workshop becomes profitable.
- If the number of attendees = 18, what is the profit?
- If the marketing department believes that only six people are expected to attend, and that the firm wants to earn a profit of $1,280, what should they charge per customer?