A couple of entrepreneurial business students

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A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for busi- ness students. While private tutoring was offe A couple of entrepreneurial business students atState University decided to put their education intopractice by developing a tutoring company for busi-ness students. While private tutoring was offered, itwas determined that group tutoring before tests inthe large statistics classes would be most beneficial.The students rented a room close to campus for $300for 3 hours. They developed handouts based on pasttests, and these handouts (including color graphs)cost $5 each. The tutor was paid $25 per hour, for atotal of $75 for each tutoring session.(a) If students are charged $20 to attend the session,how many students must enroll for the companyto break even?(b) A somewhat smaller room is available for $200for 3 hours. The company is considering thispossibility. How would this affect the break-evenpoint?

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