Online degrees and courses are widely used by colleges and universities around the world. Some students feel that the online courses should be cheaper than in class courses as they should use less direct labor (faculty) and absorb less overhead (variable and fixed) and other variable costs such as student fees for activities should be eliminated since online students do not access those services. Provide your response to this issue with a cost accounting based opinion. Please be as detailed and lengthy as possible.
Online degrees and courses are widely used by colleges and universities around the world. Some students feel that the online courses should be cheaper than in class courses as they should use less direct labor (faculty) and absorb less overhead (variable and fixed) and other variable costs such as student fees for activities should be eliminated since online students do not access those services. Provide your response to this issue with a cost accounting based opinion. Please be as detailed and lengthy as possible.
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Kenton and Denton Universities offer executive training courses to corporate clients. Kenton pays its instructors $5,700 per course taught. Denton pays its instructors $300 per student enrolled in the class. Both universities charge executives a $343 tuition fee per course attended.
Required
Prepare income statements for Kenton and Denton, assuming that 19 students attend a course.
Kenton University embarks on a strategy to entice students from Denton University by lowering its tuition to $223 per course. Prepare an income statement for Kenton assuming that the university is successful and enrolls 36 students in its course.
Denton University embarks on a strategy to entice students from Kenton University by lowering its tuition to $223 per course. Prepare an income statement for Denton, assuming that the university is successful and enrolls 36 students in its course.
Prepare income statements for Kenton and Denton Universities, assuming that 13 students attend a course, and assuming that both universities charge executives a $343 tuition fee per course attended.
Prepare income statements for Kenton and Denton, assuming that 19 students attend a course.
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Kenton University embarks on a strategy to entice students from Denton University by lowering its tuition to $223 per course. Prepare an income statement for Kenton assuming that the university is successful and enrolls 36 students in its course.
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Denton University embarks on a strategy to entice students from Kenton University by lowering its tuition to $223 per course. Prepare an income statement for Denton, assuming that the university is successful and enrolls 36 students in its course.
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Prepare income statements for Kenton and Denton Universities, assuming that 13 students attend a course, and assuming that both universities charge executives a $343 tuition fee per course attended.
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| Rohr Training Services (RTS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clientsâ offices on the clientsâ equipment. The only major expense RTS incurs is instructor salaries; it pays instructors $4,000 per course taught. RTS recently agreed to offer a course of instruction to the employees of Basemera Incorporated at a price of $600 per student. Basemera estimated that 20 students would attend the course. |
| Required - What is listed in correct. BOLD and no numbers listed in the box is what I need help with |
| Part 1: |
| a. | Relative to the number of students in a single course, is the cost of instruction a fixed or a variable cost? | ||||
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| b. | Determine the profit, assuming that 20 students attend the course. | ||||
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| c-1. | Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). | ||||||
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| c-2. | What is the percentage change in profitability? | |||||||
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| d-1. | Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). | ||||||
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| d-2. | What is the percentage change in profitability? | |||||||
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| Part 2: |
| The instructor has offered to teach the course for a percentage of tuition fees. Specifically, she wants $360 per person attending the class. Assume that the tuition fee remains at $600 per student. |
| f. | Is the cost of instruction a fixed or a variable cost? | ||||
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| g. | Determine the profit, assuming that 20 students take the course. | ||||||
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| h-1. | Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). | ||||||
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| h-2. | What is the percentage change in profitability? | |||||||
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| i-1. | Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). | ||||||||
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| i-2. | What is the percentage change in profitability? |
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| Part 3: |
| RTS sells a workbook with printed material unique to each course to each student who attends the course. Any workbooks that are not sold must be destroyed. Prior to the first class, RTS printed 20 copies of the books based on the clientâs estimate of the number of people who would attend the course. Each workbook costs $30 and is sold to course participants for $50. This cost includes a royalty fee paid to the author and the cost of duplication. |
| k. | Calculate the workbook cost in total and per student, assuming that 18, 20, or 22 students attempt to attend the course. (Round "Cost per student" answers to 2 decimal places.) |
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| l. | Classify the cost of workbooks as fixed or variable relative to the number of students attending the course. | ||||
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The Toque Cooking Academy runs short cooking courses atits small campus. Management has identified two cost drivers thatit uses in its budgeting and performance reports�the number ofcourses and the total number of students. For example, the schoolmight run four courses in a month and have a total of 60 studentsenrolled in those four courses. Data concerning the company�scost formulas appear below:
| Fixed Cost per Month | Cost per Course | Cost per Student | ||
| Instructor wages | $2,910 | |||
| Classroom supplies | $290 | |||
| Utilities | $ | 1,220 | $60 | |
| Campus rent | $ | 4,600 | ||
| Insurance | $ | 2,200 | ||
| Administrative expenses | $ | 3,700 | $43 | $5 |
For example, administrative expenses should be $3,700 permonth plus $43 per course plus $5 per student. The companys salesshould average $880 per student.
| Actual | ||
| Revenue | $ | 49,900 |
| Instructor wages | $ | 10,920 |
| Classroom supplies | $ | 17,250 |
| Utilities | $ | 1,870 |
| Campus rent | $ | 4,600 |
| Insurance | $ | 2,340 |
| Administrative expenses | $ | 3,598 |
The actual operating results for October appearbelow:
1. The Toque Cooking Academy expects to runfour courses with a total of 60 students in October. Complete thecompanys planning budget for this level ofactivity.
2 The school actually ran four courses with a total of 58students in October. Complete the companys flexible budget for thislevel of activity.
3. Complete the flexible budget performance report thatshows both activity variances and revenue and spending variancesfor October.
