A couple of entrepreneurial business students at StateUniversity decided to put their education into practice by developing a tutoring company for business students. While private tutoring was offered, it was determined that group tutoring before tests in the large statistics classes would be most beneficial. The students rented a room close to campus for for hours. They developed handouts based on past tests, and these handouts (including color graphs) cost each. The tutor was paid per hour, for a total offor each tutoring session.
(a) If students are charged to attend the session, how many students must enroll for the company to break even?
(b) A somewhat smaller room is available for for hours. The company is considering this possibility. How would this affect the break-even point?
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