Kenton and Denton Universities offer executive training courses to corporate clients. Kenton pays its instructors $7,224 per course taught. Denton pays its instructors $301 per student enrolled in the class. Both universities charge executives a $343 tuition fee per course attended.

Required

1. Prepare income statements for Kenton and Denton, assuming that 24 students attend a course.

2. Kenton University embarks on a strategy to entice students from Denton University by lowering its tuition to $223 per course. Prepare an income statement for Kenton assuming that the university is successful and enrolls 36 students in its course.

3. Denton University embarks on a strategy to entice students from Kenton University by lowering its tuition to $223 per course. Prepare an income statement for Denton, assuming that the university is successful and enrolls 36 students in its course.

5. Prepare income statements for Kenton and Denton Universities, assuming that 13 students attend a course, and assuming that both universities charge executives a $343 tuition fee per course attended.