Explore BrainMass

Explore BrainMass

    Break even analysis

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    To establish a driver education school, organizers must decide how many cars, instructors, and students to have. Costs are estimated as follows. Annual fixed costs to operate the school are $30,000. The annual cost per car is $3200. The cost per instructor is $11,000 and one instructor is needed for each car. Tuition for each student is $325. Let x be the number of cars and y be the number of students.
    a. Write an expression for total cost.
    b. Write an expression for total revenue.
    c. Write an expression for total profit.
    d. The school offers the course eight times each year. Each time the course is offered, there are two sessions. If they decide to operate five cars, and if four students can be assigned to each car, will they break even?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:50 pm ad1c9bdddf

    Solution Preview

    Annual Fixed Costs = $30,000
    Cost Per Car = $3,200
    Cost Per Instructor = $11,000
    Tuition for each student = $325

    Number of cars = Number ...

    Solution Summary

    The solution goes into a great amount of detail in order to answer the question. The solution is very well written and easy to understand. The explanation can be very easily understood by anyone with a basic understanding of the concepts. Overall, an excellent response to the question being asked.