Site fixed cost variable cost

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Reference no: EM13760734

Jimbo Elrod has obtained fixed and unit variable cost in formation of four potential locations for his professional wrestling school and summarized it in the table below. All values are in dollars.

Site Fixed Cost Variable Cost

A 10,000 24

B 12,000 20

C 14,000 18

D 16,000 17

a) Jimbo plans to charge the same amount for tuition regardless of where he decides to establish his school. If he believes that 450 students will matriculate each year, which location will result in the lowest total cost?

b) What is the break-even point for each location if Jimbo decides to charge $22 per student?

c) How many student enrollments would make Sites B and D equally attractive?

Reference no: EM13760734

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