Problem 1-13 (Algorithmic) Micromedia offers computer training seminars on a var

Question

Problem 1-13 (Algorithmic) Micromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is $500 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $9300. Micromedia rents computers for its seminars at a cost of $50 per computer per day. a. Develop a model for the total cost to put on the seminar. Let x represent the number of students who enroll in the seminar. Model for total cost930050 X X b. Develop a model for the total profit if x students enroll in the seminar. For subtractive or negative number use a minus sign even if there is a sign before the blank. (Example: -300) Model for total profit = 500 X x + 9300 X c. Micromedia has forecasted an enrollment of 30 students for the seminar. How much profit will be earned if its forecast is accurate? Profit = $ 6000

Explanation / Answer

a) Since the computer is borrowed for two days rent paid is 50*2 = 100 dollars. Model for cost is 9300 + 100 x

b) Since there is 9300 other expenditures and 100 on computer of each student but we are getting 500 from each. Finally we are getting 400 per head leaving cost of renting the computer. So, Model for total profit 400 x + -9300

c) If 30 students will come then from above equation we have profit = 400*30 - 9300 = 2700

d) for breakeven point model for profit = 0

=> 400 x - 9300 = 0

=>x = 9300/400 = 93/4 = 23

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