Reference no: EM13205135
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.
a. 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.
b. Write an equation that represents the economic profit from the weekend seminar, where x represents the number of students who enroll in the seminar.
c. 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?
d. 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?
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