Bri Smith and Joe Sullivan, two kinesiology students at ASU, are considering the possibility of offering swimming lessons to children at the university pool. The pool would charge a fixed rental fee of $1500 for the 8-weeks of lessons as well as an admission and lifeguarding fee of $7 per pupil. Bri and Joe estimate an additional cost of $4 per pupil to hire additional helpers. Bri and Joe plan to charge $65 per student for the 8-week class.
a. Use the data given to create a model for the total profit. Use the Excel tool Data/What-If Analysis/Goal Seek to determine the following:
b. the break-even quantity for the number of pupils needed to enroll in the swimming class.
c. the number of pupils they need to enroll if they want to make a profit of $5,000.
d. how much per pupil they would have to charge if only 60 pupils enrolled and they still wanted to realize their profit goal of $5,000.
e. Create a cost/revenue graph that shows total cost and total revenues (two lines) versus the number of pupils. (Make sure you reset the charge per pupil to $65 to determine graph inputs and use the range of the number of pupils from 0 to 150)