Question

Organizers of an Internet training session will charge participants $150 to attend. It costs $3000 to reserve the room, hire the instructor, bring in the equipment, and advertise. Assume it costs $30 per student for the organizers to provide the course materials. How many students would have to attend for the company to break even

Answer 1

25

Step-by-step explanation:

Breakeven quantity are the number of units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

Variable cost is cost that varies with output. Variable cost here is the cost of course materials per students

Fixed cost is cost that does not vary with output. Fixed cost here is the costs of reserving the room, hiring the instructor etc

$3000 / ($150 - $30) = 25