Midstate university is trying to decide whether to allow

Assignment Help Accounting Basics

Reference no: EM13600486

Midstate University is trying to decide whether to allow 100 more students into the university. Tuition is $5000 per year. The controller has determined the following schedule of costs to educate students:Number of Students Total Costs 4000 $30,000,000 4100 30,300,000 4200 30,600,000 4300 30,900,000The current enrollment is 4200 students. The president of the university has calculated the cost per student in the following manner: $30,600,000/4200 students = $7286 per student. The president was wondering why the university should accept more students if the tuition is only $5000.

a. What is wrong with the president's calculation?

b. What are the fixed and variable costs of operating the university?

Reference no: EM13600486

Questions Cloud

A vertically integrated company realizes profits from the : which of the above statements represent advantages to a company that is vertically integrated?i. a vertically

Expert garage pays 128000 rent each year for its two-story : expert garage pays 128000 rent each year for its two-story building. the space in this building is occupied by five

Selection decision outcome selection decision : selection decision outcomeselection decision outcomeselection decision outcomeselection decision outcomeselection

Midstate university is trying to decide whether to allow : midstate university is trying to decide whether to allow 100 more students into the university. tuition is 5000 per

Companies should not have to report forward-looking : 1 business reporting should exclude information outside of managements expertise or for which management is not the

Murray kiser operates his own catering service summary : murray kiser operates his own catering service. summary financial data for february are presented in wquation form as

Mcdougal is a good friend of krunch the owner of a local : express versus implied contracts. suppose that a local businessperson mcdougal is a good friend of krunch the owner of

The ceo would like to see higher sales and a forecasted net : hermann industries is forecasting the following income statement sales 5000000 operating costs excluding depreciation

User Account

All Pages