Question

Dunston Military Academy has an annual deficit of $250,000. Its 1,000 students pay tuition of $10,000 each per year. The economics faculty has recommended solving the problem by recruiting additional athletes with $5,000 scholarships. Each additional athlete will cost the school $2,500 (equipment, etc.). Assuming the academy agrees, how many athletes are needed to eliminate the deficit?

Answer 1

Answer:

100 athletes

Explanation:

Net amount to realize from each athlete = Scholarship amount - cost = $5,000 - $2,500 = $2,500

Number of athletes needed = Deficit ÷ Net amount to realize from each athlete = $250,000 ÷ $2,500 = 100 athletes.

Therefore, 100 athletes are needed to eliminate the deficit.