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    dmswnsgh Posts: 12, Reputation: 2
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    Feb 3, 2011, 07:57 PM
    Need help on this break-even and profit problem. Please help me out!
    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 its 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 $5000 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 $5000

    I am so confused with variable cost. Isn't it $12?
    This is what I've got so far.
    A) break even point= (1700)/(75-12) = 26.98(27 students)
    B) 5000= V(75-12)-1700 V=52.38 (53 students)
    C) 5000=60(X-12)-1700 X=123.67 ($123.67) so they have to charge $48.67 more per each pupil.

    I am not sure if it's correct. If I made any errors, hope you can fix it for me! :)
    IF my answer above is correct, for problem C please explain why they have to charge much more per person, even though they have 7 more pupils, in order to make the profit of $5000.

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