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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?
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