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a. What enrollment will enable CCI to break even? b.How many students will enable CCI to make an operating profit of $31,200 from the introductory

a. What enrollment will enable CCI to break even?

b.How many students will enable CCI to make an operating profit of $31,200 from the introductory coding course for the year?

c. Assume that the projected enrollment for the year is 7,548 students for each of the following (considered independently):

  1. What will be the operating profit (for 7,548 students)?
  2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 20 percent? Increased by 10 percent?
  3. What would be the operating profit if variable costs per student decreased by 20 percent? Increased by 10 percent?
  4. Suppose that fixed costs for the year are 15 percent lower than projected, whereas variable costs per student are 15 percent higher than projected. What would be the operating profit/loss for the introductory coding course for the year
image text in transcribed \ Alignment Number Styles Cells Editing F G H I J K L M N O P Q Conrad Coding Institute (CCI) offers online courses in coding. One of CCI's most popular courses is the introductory course that teaches basic coding skills. CCl prices this course aggressively, because of the potential for creating demand for the more advanced (and more profitable) courses. The introductory coding course has the following price and cost characteristics: Tuiton Variable costs (instruction, support, and so on) Fixed costs(advertising, salaries, and so on) Required: 90 per student 65 per student 182,400 per year a. What enrollment will enable CCl to break even? b. How many students will enable CCl to make an operating profit of $31,200 from the introductory coding course for the year? c. Assume that the projected enrollment for the year is 7,548 students for each of the following (considered independently): 1. What will be the operating profit (for 7,548 students)? 2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 20 percent? Increased by 10 percent? 3. What would be the operating profit if variable costs per student decreased by 20 percent? Increased by 10 percent? 4. Suppose that fixed costs for the year are 15 percent lower than projected, whereas variable costs per student are 15 percent higher than projected. What would be the operating profit/loss for the introductory coding course for the year? Required A Break-even point 7,296 students Contribution margin per student=selling per student-variable student cost 25 per student break even = fixed costs/contribution margin per unit 7,296 \#6 Required B Number of students Number of students needed for target profit=(Operating profit + Fixed cost)/contribution margin per student 213,600 7890 15% +

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