Complete this question by entering your answers in the tabs below. Req A Req B Req C1 Req C2 Req C3 Req C4 What enrollment will enable Alameda Tile to break even? Break-even point students < Req A Req B >
Complete this question by entering your answers in the tabs below. Req A Req B Req C1 Req C2 Req C3 Req C4 What enrollment will enable Alameda Tile to break even? Break-even point students < Req A Req B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Hello, I need help solving this accounting problem.

Transcribed Image Text: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
540 per student
Variable costs (tiles, supplies, and so on)
Fixed costs (advertising, salaries, and so on)
290 per student
127,500 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 $50,000 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)?
2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 8 percent? Increased by 24 percent?
3. What would be the operating profit if variable costs per student decreased by 15 percent? Increased by 17 percent?
4. Suppose that fixed costs for the year are
than projected. What would be the operating profit for the year?
percent lower than projected, whereas variable costs per student are 7 percent higher

Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req A
Req B
Req C1
Req C2
Req C3
Req C4
What enrollment will enable Alameda Tile to break even?
Break-even point
students
< Req A
Req B >
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