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Many, if not most schools in the US have large excess capacity cost, because they are under utilized in the summer months. The dean at
Many, if not most schools in the US have large excess capacity cost, because they are under utilized in the summer months. The dean at the local business school is developing a cost of customer system to assess costs of students in different degree programs. He has asked you for your recommendation on how these excess capacity costs should be assigned. What would you recommend? What would be your thought process on this problem? The only
option that you have is to make the recommendation. Also, comment on other recommendations.
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