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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