Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
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. CCI 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: Tuition Variable costs (instruction, support, and so on) Fixed costs (advertising, salaries, and so on) Required: a. What enrollment will enable CCI to break even? $ 65 per student 40 per student 180,000 per year b. How many students will enable CCI to make an operating profit of $30,000 from the introductory coding course for the year? c. Assume that the projected enrollment for the year is 7,500 students for each of the following (considered independently): 1. What will be the operating profit (for 7,500 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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started