Question

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

&175

Step-by-step explanation:

Breakeven price is the minimum price a product or service must be sold to cover the cost of producing it. Its aim is to ensure that items are not sold at a loss.

In the scenario given ,

Cost of room reservation = $3000

Cost of room / student = $3000/20 = $150

Course materials per student = $25

Total cost of course materials = $25 * 20 =$500

Total cost of training = $3,500

Target attendees = 20

Breakeven price = $3500/20 = $175