Business, 19.02.2020 23:04 hdhdhd49jdhd

Professional Exam Prep (PEP) uses a cost-plus model to determine the price it charges students. Specifically, the Company charges cost plus 25% of cost. Fixed cost including facility rental and instructor compensation amount to $6,000 per month. PEP incurs variable costs for books and supplies that amount to $50 per student. Monthly, enrollment tends to fluctuate. The following data represent the Company’s expectations for the first three months of the current year.

Day

January

February

March

Total

No. of Students

20

30

50

100

Total Variable Cost

$1,000

$1,500

$2,500

$5,000

Total Fixed Cost

$6,000

$6,000

$6,000

$18,000

Based on this information which of the following amounts represents the average price PEP should charge per student for the month of January.

$287.50
$230.00
$350.00
$437.50

Answers: 3

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Professional Exam Prep (PEP) uses a cost-plus model to determine the price it charges students. Spec...

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