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?
A) $120
B) $150
C) $175
D) $200

Question

Quizplus · Accepted Answer

To break even, the total revenue from the seminar needs to cover the fixed cost of $3000 plus the variable cost of providing course materials to 20 people (20 x $25 = $500).
Total cost = $3000 + $500 = $3500
To break even, the price per person would be:
$3500 ÷ 20 = $175
Therefore, the price per person should be $175 in order to break even.

A University Is Planning a Seminar