Maurice Tutor

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About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 408 Weeks Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 10 Dec 2017 My Price 8.00

Sensitivity Analysis

CVP Analysis—Sensitivity Analysis (spreadsheet recommended)

Alameda Tile sells products to many people remodeling their homes and thinks that they could profitably offer courses on tile installation, which might also increase the demand for their products. The basic installation course has the following (tentative) price and cost characteristics:

Tuition

$ 400 per student

Variable costs

 

(tiles, supplies, and so on)

240 per student

Fixed costs (advertising,

 

salaries, and so on)

80,000 per year

Required

a. What enrollment will enable Alameda Tile to break even?

b. How many students will enable Alameda Tile to make an operating profit t of $40,000 for the year?

c. Assume that the projected enrollment for the year is 800 students for each of the following (considered independently):

1. What will be the operating profit t (for 800 students)?

2. What would be the operating profit t if the tuition per student (that is, sales price) decreased by 10 percent? Increased by 20 percent?

3. What would be the operating profit t if variable costs per student decreased by 10 percent? Increased by 20 percent?

4. Suppose that fixed costs for the year are 10 percent lower than projected, whereas variable costs per student are 10 percent higher than projected. What would be the operating profit t for the year?

 
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Answers

Maurice Tutor
(5)
Status NEW Posted 10 Dec 2017 07:12 PM My Price 8.00

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