2.Joyful Journeys Music School provides private music lessons for elementary students.Its operating costs are

2. Joyful Journeys Music School provides private music lessons for elementary students. Its operating costs are

as follows:

                        Rent on facilities         $2,200 per month

                        Advertising                    $274 per month 

                        Instrument Rent            $750 per month

                        Teaching Instruction      $40 per student

                        Books                               $5 per student

                        Other Costs                      $3 per student

Joyful Journeys charges $100 per student per month. 

Instructions

(a)        Determine the company's break-even point in (1) number of students taught per month and (2) dollars.

(b)       Joyful Journeys has just received notice that the rent on their facilities will be increasing by $500 per month and the instrument rent will also be increasing $20 per month.  (1) Determine the company's break-even point in the number of students taught per month based on the new information.   (2) Determine the amount to charge per student assuming that Joyful Journeys does not increase the number of students taught.

3. The Eatery is a restaurant in DeKalb, Illinois. It specializes in deluxe sandwiches in a moderate price range. Michael Raye, the manager of The Eatery, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows.