Dunston Military Academy has an annual deficit of $250,000.Its 1,000 students pay tuition of $10,000 each per year.The economics faculty has recommended solving the problem by recruiting additional athletes with $5,000 scholarships.Each additional athlete will cost the school $2,500 (equipment, etc.).Assuming the academy agrees, how many athletes are needed to eliminate the deficit?
A)Zero, the deficit cannot be eliminated by giving more scholarships.
B)25
C)50
D)100

Question

Quizplus · Accepted Answer

Each new athlete brings in $10,000 in tuition but receives a $5,000 scholarship, netting the academy $5,000. Additionally, there's a cost of $2,500 per athlete, leaving a net gain of $2,500 per athlete. To cover a $250,000 deficit, 100 athletes ($250,000 / $2,500) are needed.

Dunston Military Academy Has an Annual Deficit of $250,000