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How much will they make on the additional students

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Reference no: EM132945150

Question - Should East Coast University accept additional students under the following scenario:

Normal Revenue

Revenue $10,000 per student 10,000

Variable costs are 75% of 10,000 tuition 7,500

Contribution Margin per student 2,500

CM % 25%

The nearby Mid-west college recently closed and has requested that East Coast do a one year

Teach out their student for 1500 students @ 19,000 per student. East Coast must either accept 1500 students or 0 students. They would have to reduce their own students by 500 to accept the Mid-West student.

Enter the number without commas and put in all number positives:

How much will they make on the additional students?

How much will they loosely by declining 500 students?

Should they take the student?

Reference no: EM132945150

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