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Suppose that a private college offers a varietalf of (inperson] skills training courses. The college currently offers 12 courses per term, with an average enrolment

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Suppose that a private college offers a varietalf of (inperson] skills training courses. The college currently offers 12 courses per term, with an average enrolment of 45 students per course, and charges student fees of $2,000 per course. The college's iinancial manager reports that the college currently has the following costs: Staff coats Administrators' salaries: $500,000 per term [Full-time} support staff salaries: $200,000 per term {Casual} Teachers' salaries: $10,000 per course "Building costs \"(The building is owned by the college.) Building maintenance: $125,000 per term Room preparation and cleaning: $3.000 per course [30 ii a room is not used] The college is considering offering a new computer training course. Based on in-house market research, the college believes that the computer training course will attract between 20-25 students. The college's financial manager has made the following recommendation: \"My advice is not to offer this course. The current cost to the college of running a course is $81,750. With the current student fees, a course must have at least 41 enrolments to be cost effective. and this course is not expected to meet that threshold.Ir

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