Answer:
(a) 26 enrolls
(b) 93
(c) $116.3
Explanation:
No. of students required to cover rental charges:
= $1,700 ÷ $75 (charge per student)
= 22.6
= 23
Other charges $7 per pupil for 23 pupils it will charge:
= $7 × 23
= $161
For hiring assistants it cost $5 per child for 23 kids it will charge:
= $5 × 23
= $115
Total charges incurred for 23 kids:
= $1,700 + $161 + $115
= $1,976
(a) For break even situation molly and Kathleen need 26 enrolls .
(b) Expenses + profit margin
= $1,976 + $5,000
= $6,976
No. of enrolls required to make $5,000 profit:
= $6,976 ÷ 75
= 93
(c) Amount to be charged to make $5000 profit:
= $6,976 ÷ 60
= $116.3