Question

A university is planning a seminar. it costs $3000 to reserve a room, hire an instructor, and bring in the equipment. assume it costs $25 per student for the administrators to provide the course materials. if we know that 20 people will attend, what price should be charged per person to break even?

Answer 1

The total cost of the event will be a fixed cost of $3000 plus a variable cost of $25/student times 20 students = $500. Thus the entire cost of the event is $3500. If the university wishes to break even with an attendance figure of 20 students, then the price per person will need to be $3500/20 = $175 per person.

Answer 2

The answer is "$175".

cost to reserve a room, hire an instructor, and bring in the equipment = $3000
costs per student for the administrators to provide the course materials =$25
people who will attend = 20
first calculate the total cost = $3000 + ($25 x 20)
=$3000 +$500 = $3500
Now divide this by number of people attending = $3500/20 = $175