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Dmitrij [34]
3 years ago
13

Micromedia company offers computer training seminars on a variety of topics. In the seminars each student works at a personal co

mputer, practicing the particular activity that the instructor is presenting. Micromedia 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 for the conference room, instructor compensation, lab assistants, and promotion is $4800. Micromedia rents computers for its seminar at a cost of $30 per computer per day. What is the break-even quantity
Business
1 answer:
Soloha48 [4]3 years ago
3 0

Answer:

the break-even quantity is 18 students

Explanation:

Break Even point is when a firm neither makes a profit nor a loss

Break Even = Fixed Costs/Contribution per Unit

                   = $4800/($300-$30)

                   = 17.77777778

                   = 18 students

Please note that, the cost for the conference room, instructor compensation, lab assistants, and promotion is $4800 represents a fixed cost as this does not vary with the number of students taking the training seminars.

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