A university is planning a seminar. it costs $3000 to reserve a room, hire an instructor, and bring in the equipment. assume it costs $25 per student for the administrators to provide the course materials. if we know that 20 people will attend, what price should be charged per person to break even?

Question

Business

Cassius Hines

20 October, 02:24

A university is planning a seminar. it costs $3000 to reserve a room, hire an instructor, and bring in the equipment. assume it costs $25 per student for the administrators to provide the course materials. if we know that 20 people will attend, what price should be charged per person to break even?

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Answers (2)

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Nick Rollins · Answer 1

The total cost of the event will be a fixed cost of $3000 plus a variable cost of $25/student times 20 students = $500. Thus the entire cost of the event is $3500. If the university wishes to break even with an attendance figure of 20 students, then the price per person will need to be $3500/20 = $175 per person.

Micah Fields · Answer 2

The answer is "$175".

cost to reserve a room, hire an instructor, and bring in the equipment = $3000

costs per student for the administrators to provide the course materials = $25

people who will attend = 20

first calculate the total cost = $3000 + ($25 x 20)

=$3000 + $500 = $3500

Now divide this by number of people attending = $3500/20 = $175