14. Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer, A local swim club opens its pool at noon each
14. Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer, A local swim club opens its pool at noon each
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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14. Hannah Byers and Kathleen Taylor are considering the possibility of teaching
swimming to kids during the summer,A local swim club opens its pool at noon each
day, so it is available to rent during the morning. The cost of renting the pool during
the10-week period for which Hannah and Kathleen would need it is $1,700, The
pool would also charge Hannah and Kathleen an admission, towel service, and life
guarding fee of S7 per pupil, and Hannah and Kathleen estimate an additional $5
cost per student to hire several assistants, Hannah and Kathleen plan to charge
$75 per student for the 10-week swimming class.
a. How many pupils do Hannah End 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 do they need to enroll?
c. 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 $5,000?
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