Business, 12.02.2020 03:19 lnelson9127
Professional Exam Prep (PEP) uses a cost-plus model to determine the price it charges students. Specifically, the Company charges cost plus 25% of the cost. Fixed costs, including facility rental and instructor compensation, amount to $7,000 per month. PEP incurs variable costs for books and supplies that amount to $60 per student. Monthly, enrollment tends to fluctuate. The following data represent the Company's expectations for the first three months of the current year. 15 Month No. of Students Total Variable Cost Total Fixed Cost January February 25 $ 900 $1,500 $7,000 $7,000 March 60 $3,600 $7,000 Total 100 $ 6.000 $21,000 Based on this information which of the following amounts represents the average price PEP should charge per student for the month of January.
a. $337.50
b. $526.67
c. $270.00
d. $658.33
Answers: 1
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