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Should the school consider doing this

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Question - The School of Education is planning to begin an online program. The initial start-up costs for computing equipment, facilities, course development, and staff recruitment and development are P400,000. The school plans to charge tuition of P20,000 per student per year. However, the university administration will charge the school P14,000 per student for the first 100 students enrolled each year for administrative costs and its share of the tuition payments.

a. How many students does the school need to enroll in the first year to break even?

b. If the school can enroll 75 students the first year, how much profit will it make?

c. The school believes it can increase tuition to P26,000, but doing so would reduce enrollment to 35. Should the school consider doing this?

Reference no: EM132984945

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