5. Cost-Volume-Profit-Analysis

Whenever a business lowers their sales price, we expect that their break-even point after the change will be:

Fill in the blanks. D- Education is a private school that has \$1,000,000 in fixed costs per year and spends \$5,000 per student in variable costs. If their tuition is \$10,000 per year, their breakeven point would be ____________ and, if they raised their tuition to \$15,000 per year, their breakeven point would be ____________.

Whenever a business’ variable costs rise, we expect that their break-even point after the change will be:

Fill in the blank. D- Education has \$1,000,000 in fixed costs per year and spends \$5,000 per student in variable costs. Their tuition is \$10,000 per year. If their variable costs increased to \$7,500 per student, their breakeven point would be ____________.