The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reportsthe number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 60 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 60 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per per Month Course Student $2,950 Instructor wages 290 Classroom supplies 1,200 80 Utilities 4,600 Campus rent 2,100 Insurance Administrative expenses 3,700 41 5 For example, administrative expenses should be $3,700 per month plus $41 per course plus $5 per student. The company's sales should average $860 per student. The actual operating results for September appear below Actual $48,700 Revenue 11,080 Instructor wages 17,250 Classroom supplies 1,930 Utilities 4,600 Campus rent 2,240 Insurance 3,590 Administrative expenses