Answer:
Alameda Tile
a. The enrollment to enable Alameda Tile to break even = 500 students.
b. To make an operating profit of $80,000, number of students 
= 750 students
c. With projected enrollment for the year of 800 students:
1. Operating profit = Total Contribution - Fixed Costs
= ($320 * 800) - $160,000
= $96,000
2. a) Operating Profit, if the tuition per student decreased by 10%.
New selling price = $720  which is $800 * (1 - 10%)
Variable cost             480
Contribution           $240
Operating profit = Total Contribution - Fixed Costs
= ($240 * 800) - $160,000
= $32,000
2. b) Operating Profit, if the tuition per student increased by 20%.
New selling price = $960  which is $800 * (1 + 20%)
Variable cost             480
Contribution           $480
Operating profit = Total Contribution - Fixed Costs
= ($480 * 800) - $160,000
= $224,000
3. a) Operating Profit, if variable costs per student decreased by 10%.
Selling price =         $800
Variable cost             432     $480 * (1 - 10%)
Contribution           $368
Operating profit = Total Contribution - Fixed Costs
= ($368 * 800) - $160,000
= $134,400
3. b) Operating Profit, if variable costs per student increased by 20%.
Selling price =         $800
Variable cost             576     $480 * (1 + 20%)
Contribution           $224
Operating profit = Total Contribution - Fixed Costs
= ($224 * 800) - $160,000
= $19,200
4. Operating profit, if fixed costs reduced by 10% and variable cost increased by 10%:
Selling price =         $800
Variable cost             528     $480 * (1 + 10%)
Contribution           $272
Operating profit = Total Contribution - Fixed Costs
= ($272 * 800) - $144,000 ($160,000 * (1 - 10%)
= $73,600
Explanation:
a) Data and Calculations:
Tentative Price and Cost Characteristics:
Tuition $ 800 per student 
Variable costs (tiles, supplies, and so on) 480 per student 
Fixed costs (advertising, salaries, and so on) 160,000 per year
Per unit       Tentative 
Selling price = $800
Variable cost    480
Contribution  $320
b) Computation of break-even point:
To break-even with fixed cost of $160,000, sales unit will be equal to:
Fixed cost/Contribution per unit = $160,000/$320 = 500 students
c) Fixed cost + Target Profit /Contribution per unit:
= ($160,000 + $80,000)/$320
= $240,000/320 
= 750 students