Jimbo Elrod has obtained fixed and variable cost information for four potential locations for his professional wrestling school and summarized it in tabular form below. All values are in dollars.
Site Fixed Cost Variable Cost
A 10,000 24
B 12,000 20
C 14,000 18
D 16,000 17
a) Jimbo plans to charge the same amount for tuition regardless of where he decides to establish his school. If he believes that 700 students will matriculate each year, which location will result n the lowest total cost? (4 points)
b) What is the break-even point for each location if Jimbo decides to charge $21 per student? (5points)