(a)
The break-even point of the company.
![Check Mark](/static/check-mark.png)
Answer to Problem 11P
300 residents in order to break-even.
Explanation of Solution
Given information:
Price charged by company = $6000/month
Operating expenses = $600,000 per month
Cost per person = $4000 per person per month
a).
Break-even point is the point at which total revenue earned by the company is just sufficient to cover its total cost of operation.
Calculation:
At break-even point,
Conclusion:
The Company needs to have 300 senior residents in order to just break-even.
(b)
The annual profit or loss of the company.
![Check Mark](/static/check-mark.png)
Answer to Problem 11P
Annual profits = $1,200,000.
Explanation of Solution
Given information:
Calculation:
Conclusion:
Annual profits = $1,200,000.
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Chapter 2 Solutions
ENGR.ECONOMIC ANALYSIS W/DASHBOARD
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- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
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