Solution-What enrollment will enable alameda tile to break

What enrollment will enable alameda tile to break even

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Reference no: EM132818177

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 $470per student

Variable costs (tiles, supplies, and so on) 260 per student

Fixed costs (advertising, salaries, and so on) 105,000 per year

Required:

Problem a. What enrollment will enable Alameda Tile to break even?

Problem b. How many students will enable Alameda Tile to make an operating profit of $33,600 for the year?

Reference no: EM132818177

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What enrollment will enable alameda tile to break even

Reference no: EM132818177

Reference no: EM132818177

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