Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics. Tuition Variable costs (tiles, supplies, and so on) Fixed costs (advertising, salaries, and so on) 390 per student 240 per student 70,500 per year Required: a. What enrollment will enable Alameda Tile to break even? b. How many students will enable Alameda Tile to make an operating profit of $40,500 for the year? c. Assume that the projected enrollment for the year is 800 students for each of the following (considered independently): 1. What will be the operating profit (for 800 students)?
Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics. Tuition Variable costs (tiles, supplies, and so on) Fixed costs (advertising, salaries, and so on) 390 per student 240 per student 70,500 per year Required: a. What enrollment will enable Alameda Tile to break even? b. How many students will enable Alameda Tile to make an operating profit of $40,500 for the year? c. Assume that the projected enrollment for the year is 800 students for each of the following (considered independently): 1. What will be the operating profit (for 800 students)?
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Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics.
![Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation,
which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost
characteristics.
390 per student
240 per student
70,500 per year
Tuition
Variable costs (tiles, supplies, and so on)
Fixed costs (advertising, salaries, and so on)
Required:
a. What enrollment will enable Alameda Tile to break even?
b. How many students will enable Alameda Tile to make an operating profit of $40,500 for the year?
c. Assume that the projected enrollment for the year is 800 students for each of the following (considered independently):
1. What will be the operating profit (for 800 students)?
2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 8 percent? Increased by 24 percent?
3. What would be the operating profit if variable costs per student decreased by 11 percent? Increased by 15 percent?
4. Suppose that fixed costs for the year are 8 percent lower than projected, whereas variable costs per student are 5 percent higher
than projected. What would be the operating profit for the year?
Complete this question by entering your answers in the tabs below.
Reg A
Reg B
Req C1
Req C2
Reg C3
Reg C4
What enrollment will enable Alameda Tile to break even?
Break-even point
students
< Req A
Req B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a92e595-69a8-4ba3-9e62-d1ba59e7a231%2Facf841ca-367f-4186-a496-f0d5ec1002f8%2Fxtee8pf_processed.png&w=3840&q=75)
Transcribed Image Text:Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation,
which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost
characteristics.
390 per student
240 per student
70,500 per year
Tuition
Variable costs (tiles, supplies, and so on)
Fixed costs (advertising, salaries, and so on)
Required:
a. What enrollment will enable Alameda Tile to break even?
b. How many students will enable Alameda Tile to make an operating profit of $40,500 for the year?
c. Assume that the projected enrollment for the year is 800 students for each of the following (considered independently):
1. What will be the operating profit (for 800 students)?
2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 8 percent? Increased by 24 percent?
3. What would be the operating profit if variable costs per student decreased by 11 percent? Increased by 15 percent?
4. Suppose that fixed costs for the year are 8 percent lower than projected, whereas variable costs per student are 5 percent higher
than projected. What would be the operating profit for the year?
Complete this question by entering your answers in the tabs below.
Reg A
Reg B
Req C1
Req C2
Reg C3
Reg C4
What enrollment will enable Alameda Tile to break even?
Break-even point
students
< Req A
Req B >
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