Question

A yoga instructor offers two options for classes. Option 1: $40 joining fee and $20 per class Option 2$0 joining fee and $25 per class After how many classes will both options have the same cost?

Answer 1

The indifference point is 8 classes.

Explanation:

Giving the following information:

Option 1:

$40 joining fee and $20 per class

Option 2:

$0 joining fee and $25 per class

First, we establish the total cost formulas:

Option 1= 40 + 20x

Option 2= 0 + 25x

x= number of classes

Now, we equal both formulas and isolate x:

40 + 20x = 25x

40=5x

8=x

The indifference point is 8 classes.

Prove:

Option 1= 40 + 20*8= $200

Option 2= 0 + 25*8= $200