Mapleview Academy, a private school, serves 500 students:200 in middle school (Grades 6 to 8), and 300 in the high school (Grades 9 to 12). Each school group has its own assistant principal, and there is one principal, Wanda Rossato, for the academy. For any single student, almost all of Mapleview's costs are indirect.Mapleview currently has five indirect cost categories, which are listed in Table A. Rossato wants to develop an ABC system for the school. She identifies four activities that represent the "scope" of the Mapleview's activities:

• academic instruction
• administration
• sports training
• community relationships

Rossato and her team identify the number of students as the cost driver of academic instruction and administrative costs, and the number of team sports offered by the school as the driver of sports training costs. The cost of maintaining community relationships, which is primarily dealing with town council and participating in local activities, is considered a "facility-sustaining" (cost of doing business) cost that the school must incur every year. Table A shows the percentage of costs in each line item used by each activity.

TABLE A

Percentage of Costs Used by Each Activity
Indirect Cost	Academic Instruction	Administration	Sports Training	Community Relationships	2020 Expenditures
Teachers' salaries & benefits	60%	20%	8%	12%	$4,000,000
Principals' salaries & benefits	10%	60%	5%	25%	$400,000
Facilities	35%	15%	45%	5%	$2,600,000
Office staff salaries & benefits	5%	60%	10%	25%	$300,000
Sports program staff salaries & benefits	35%	10%	45%	10%	$500,000

Required:

1. What is the overall cost of educating each student? Of this cost, what percentage is the cost of:
   1. Academic instruction
   2. Administration

1. Rossato is dismayed at the high cost of sports training. Further examination reveals that $300,000 of those costs are for ice hockey, a sport pursued by 40 students. What would the overall cost of educating each student if the ice hockey program was eliminated and its associated cost saved?

1. For the 2021 school year, Mapleview charges an annual fee of $1,000 for any student who want to play ice hockey. As a result, 10 of the less-motivated students drop the sport. Assuming the costs of the school in 2021 are the same as 2020, what is the overall cost of education for each student in 2021?

1. While current enrollment is 500 students, the school's capacity is 600 students.Consider the cost of the academic instruction activity as fixed costs in the short run and at these costs Mapleview could ramp up to 600 students. What are some actions Rossato could take both in the short-term and long-term to reduce the cost of academic instruction per student?