Raissa's Early Learning Center Must Decide How Many Students They

question 131

Short Answer

Raissa's early learning center must decide how many students they need to enroll to make a profit. There is a trade off in quality of care and the number of students enrolled. They must make a profit but not have so many children that the care suffers. They must establish the point where the number of enrolled students establishes the first profit point. They've determined that their fixed costs are $4,500 per month. It costs them an additional $150 per month for each enrolled child. They only enroll students on a monthly basis at a price of $450. How many students must they enroll to start making a profit?

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Definitions:

Cremaster Muscle

A muscle that covers the testis and spermatic cord, involved in the reflex action of moving the testis closer to the body in response to cold or fear.

Vas Deferens

The duct that conveys sperm from the testicle to the urethra.

Spermatic Cord

A bundle of fibers and tissues in males that includes the vas deferens, blood vessels, nerves, and the cremaster muscle, responsible for supporting the testes.

Inguinal Canal

A passage in the lower anterior abdominal wall which in men, contains the spermatic cord and in women, the round ligament of uterus.