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# Finding break even number of pupils

Molly Dymond and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer. A local swim club opens its pool at noon each day, so it is available to rent during the morning. The cost of renting the pool during the 10-week period for which Molly and Kathleen would need it is \$ 1,700. The pool would also charge Molly and Kathleen an admission, towel service, and life guarding fee of \$7 per pupil, and Molly and Kathleen estimate an additional \$5 cost per student to hire several assistants. Molly and Kathleen plan to charge \$75 per student for the 10-week swimming class.

a.How many pupils do Molly and Kathleen need to enroll in their class to break even?
b.If Molly and Kathleen want to make a profit of \$5,000 for the summer, how many pupils do they need to enroll?
c. Molly and Kathleen estimate that they might not be able to enroll more than 60 pupils. If they enroll this many pupils , how much would they need to charge per pupil in order to realize their profit goal of \$5,000?

#### Solution Preview

Solution:

a. How many pupils do Molly and Kathleen need to enroll in their class to break even?
Fixed Costs=F=\$1700
Sale Price=P=\$75 per student
Variable Costs=V=7+5=\$12 per student
Students needed to Breakeven=F/(P-V)=1700/(75-12)= 26.98413 =27

b. If Molly and Kathleen want to make a profit of \$5,000 ...

#### Solution Summary

Solution describes the steps to calculate break even point for Molly and kathleen. It also calculates number of pupils needed to enroll to realize a desired profit.

\$2.19