Question

Micromedia company offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft excel in statistical analysis. The projected fee for the seminar is $300 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $4800. Micromedia rents computers for its seminar at a cost of $30 per computer per day. What is the break-even quantity

Answer 1

the break-even quantity is 18 students

Step-by-step explanation:

Break Even point is when a firm neither makes a profit nor a loss

Break Even = Fixed Costs/Contribution per Unit

= $4800/($300-$30)

= 17.77777778

= 18 students

Please note that, the cost for the conference room, instructor compensation, lab assistants, and promotion is $4800 represents a fixed cost as this does not vary with the number of students taking the training seminars.