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sity in Philadelphia used a biplane to pull a sign promoting its evening program, and one in Mississippi 5-38 Advertising Expenditures and Nonprofit Organizations designed

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sity in Philadelphia used a biplane to pull a sign promoting its evening program, and one in Mississippi 5-38 Advertising Expenditures and Nonprofit Organizations designed bumper stickers and slogans as well as innovative programs. Suppose Hilliard College charges a comprehensive annual fee of $14,800 for tuition, room and board, and it has capacity for 2,000 students. The admissions department predicts enrollment of 1,700 students for 20X1. Costs per student for the 20X1 academic year are as follows: R LE Variable Fixed Total Educational programs $5,200 $ 3,900 $ 9,100 Room 1,100 2,300 3,400 Board 2,500 500 3.000 $8,800 $ 6,700* $15,500 *Based on 1,700 2,000 students for the year. The assistant director of admissions has proposed a 2-month advertising campaign using radio and television advertisements, together with an extensive direct mailing of brochures. 1. Suppose the advertising campaign will cost $1.41 million. What is the minimum number of additional students the campaign must attract to make the campaign break even? 2. Suppose the admissions department predicts that the campaign will attract 335 additional students. What is the most Hilliard should pay for the campaign and still break even? 3. Suppose a 3-month (instead of 2-month) campaign will attract 440 instead of 335 additional students. What is the most Hilliard should pay for the 1-month extension of the campaign and still break even? E G H F Hilliard College Total Variable Amount Amount Amount $ Fixed Amount Amount Amount $ B D 5 Data Input Section: 6 7 8 Educational programs 9 Room 10 Board 11 12 Additional information: 13 Annual fee for tuition, room, board 14 Capacity of college (in students) 15 Contribution margin per student 16 Advertising campaign 17 Additional students in part 2 18 Additional students in part 3 19 Output Section: 20 Part 1 21 Break-even point for the campaign in students 22 23 Part 2 24 Most Hilliard should pay 25 26 Part 3 27 Most Hilliard should pay for extension 28 29 Amount Amount Formula 1 Amount 335 105 Formula 2 Formula 3 Formula 4 30 End of

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