Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Number of Vaccines Administered 600 500 450 Total costs: Fixed costs A $18,000 Variable costs B 25,000 D Total costs E $43,000 F Cost per

image text in transcribed
image text in transcribed
Number of Vaccines Administered 600 500 450 Total costs: Fixed costs A $18,000 Variable costs B 25,000 D Total costs E $43,000 F Cost per vaccine administered: Fixed cost G H Variable cost ic K L Total cost per vaccine administered M N Based on the above information, can you find the dollar amounts of A through O? 61 words Now that we all understand the difference between fixed and variable costs and total and average costs, let's try a practice exercise. Currently, ABC University has an enrollment of 10,500 students and the capacity to accommodate a total of 12,000 students. The University collects tuition at the average rate of $5,000 per student for the semester. The university president is worried about "how the University is charging less tuition compared to its average cost" and is struggling with the question of allowing another 500 full-time students to enroll. The University's costs in relation to the enrollment look as shown below: Enrollment level (# of students). Total Cost ($) 10,000 53,000,000 Average Cost (5) 5,300 10,100 53,350,000 5,282 10,500 54,750,000 5,214 10,750 55,625,000 5,174 11,000 56,500,000 5,136 The CFO has been in favor of enrolling another 500 students because he says that this will bring in $2,500,000 in new tuition at the rate of $5,000 per student. The president of the University thinks that this is an absurd idea because according to her, the average cost per student of

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting With Ready Notes

Authors: Ronald W. Hilton

1st Edition

0075619733, 978-0075619734

More Books

Students also viewed these Accounting questions

Question

socialist egalitarianism which resulted in wage levelling;

Answered: 1 week ago

Question

soyuznye (all-Union, controlling enterprises directly from Moscow);

Answered: 1 week ago