Determine the company break-even point

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Reference no: EM132170255

Problem - The operating costs for Rhythm music school is as follows:

Rent on facilities

OMR 2,200 per month

Advertising

OMR 274 per month

Instrument Rent

OMR 750 per month

Teaching Instruction

OMR 40 per student

Books

OMR 5 per student

Other Costs

OMR 3 per student

Rhythm music school charges OMR100 per student per month.

1. Determine the company's break-even point in

i. Number of students taught per month

ii. Amount OMR

2. Rhythm music school has just received notice that the rent on their facilities will be increasing by OMR500 per month and the instrument rent will also be increasing OMR20 per month.

i. Determine the company's break-even point in the number of students taught per month based on the new information.

ii. Determine the amount to charge per student assuming that Rhythm music school does not increase the number of students taught.

Reference no: EM132170255

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