Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics. Tuition Variable costs (tiles, supplies, and so on) Fixed costs (advertising, salaries, and so on) 390 per student 240 per student 70,500 per year Required: a. What enrollment will enable Alameda Tile to break even? b. How many students will enable Alameda Tile to make an operating profit of $40,500 for the year? c. Assume that the projected enrollment for the year is 800 students for each of the following (considered independently): 1. What will be the operating profit (for 800 students)?

Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics. Tuition Variable costs (tiles, supplies, and so on) Fixed costs (advertising, salaries, and so on) 390 per student 240 per student 70,500 per year Required: a. What enrollment will enable Alameda Tile to break even? b. How many students will enable Alameda Tile to make an operating profit of $40,500 for the year? c. Assume that the projected enrollment for the year is 800 students for each of the following (considered independently): 1. What will be the operating profit (for 800 students)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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