Question

I need to calculate the break even point for the project below.

For university X, how many students need to register for each class, so that the university breakeven? In other words how many students do I need to take each class so I do not lose money. The university does not pay rent or any other expanses. However, it pays 14.5% on each student to the hosting location for services students receive like gym, library and etc.

- The university charge $815/unit.

- Here are the expanses to run day to day operations:

Faculty	$ 1,460,387.00
Contract Professors	$    202,404.00
Benefits	$      697860

               Total                        $ 2,360,651.00

- Here is Revenue: $ 3,032,815.00

- Here is number of students and units taught every year by quarter.

	students	units
summer	996	101
fall	1448	179
winter	1357	181
spring	877	163
Total	4678	624

Answer 1

Revenue	X
Variable cost	0.145X
Contribution Margin	X-0.145X
Fixed Costs	2,360,651.00
Breakeven Point	0
X-0.145X                    =	2,360,651
0.855X                        =	2,360,651
X                                  =	2,760,995
University Breakeven Revenue		2,760,995
how many students do I need to take each class so I do not lose money.
Answer:	3,388 Students