Problem:
Macromedia is a relatively new company that offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the activity that the instructor is presenting. To introduce themselves to potential students they have recently spent $6,000 to design, print and distribute brochures. The company is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is $300 per student. The cost of the conference room, instructor compensation, lab assistants, and seminar-specific promotion is $4800. Macromedia also rents computers for its seminars at a cost of $30 per computer per day.
Required:
Question 1) Write an equation that represents the total cost to put on the seminar, where x represents the number of students who enroll in the seminar.
Question 2) Write an equation that represents the economic profit from the weekend seminar, where x represents the number of students who enroll in the seminar.
Question 3) Macromedia has forecasted an enrollment of 30 students for the seminar. If their forecast is correct, how does the $300 fee compare to the break-even price/fee?
Question 4) If they do not feel they have an accurate demand forecast and do intend to charge $300 per student, what is the break-even enrollment?
Provide detailed solution of the given problem.