KSB wants to run a new programme. Estimated fees to be paid by a student is GH7,500. Fixed cost for the programme is expected to GH135,000 per annum while variable cost per student is estimate at GH3,000.

You are required to calculate and advise KSB on:

• the number of students to enroll to break even
• the enrolment fees value at break-even point
• the margin of safety, if the expected enrolment is 90 students
• If the taxation rate is 20% how many students need to enroll on the programme to make a profit after tax of GH45,000 p.a.?