Computation of profit margin of college at given strength

Reference no: EM13356876

Computation of profit margin of College at given strength of students.

Houghton College is planning to begin a new graduate degree program in Mathematics. The initial startup cost for computing equipment, facilities, course development and staff recruitment is $350,000. The college plans to charge tuition for the program at $21,000 per year per student. Administration costs are expected to be $12,000 per student. In addition the College expects to pay out an average of $3,000 per student in scholarship awards.

Assume the college keeps it's tuition at $21,000. The college has applied for a state grant for the new program, if the grant is approved the college will receive $100,000 per year in grant money. In order to receive the grant they will need to increase their average scholarship award by $1,000 per student. With the increase in scholarship money the school expects an increase in enrollment to 125 students for the year. Should the college accept the grant? Explain the basis for your answer.

Reference no: EM13356876

Questions Cloud

Valuable information or data regularly covered in the : valuable information or data regularly covered in the company.post a single page essay answering the following

Ratio analysis assets and liability classifications revenue : ratio analysis assets and liability classifications revenue and expenses reporting basis and calculations for accrual

Computation of current ratio working capital acid-test : computation of current ratio working capital acid-test ratio receivables turnover and inventory turnover.boyle

Amortization for bonds accounting and interest expense on : amortization for bonds accounting and interest expense on bonds calculations.on january 1 2002 leary corporation issued

Computation of profit margin of college at given strength : computation of profit margin of college at given strength of students.houghton college is planning to begin a new

Analyzing the total profit of college when there is : analyzing the total profit of college when there is decrease in enrollment due to increase in tuition fee.houghton

Computation of profit of college at given number of : computation of profit of college at given number of students strength.houghton college is planning to begin a new

Computation of workers cost supplies to be purchased and : computation of workers cost supplies to be purchased and bad debt expenses.the hospital expects to employ workers in

Multiple choice questions on break even analysis decision : multiple choice questions on break even analysis decision making.1. the assembly line workers at precision tools have

User Account

All Pages