Submitted by: Submitted by sherryberry11194
Views: 10
Words: 805
Pages: 4
Category: Business and Industry
Date Submitted: 03/28/2016 12:34 AM
New Increase
Instructor Average over
to Student Total Number of Incremental Tuition Current
Age Ratio Children New Classes Costs Increase Tuition
2-3 6:1 20 2 3,920 196.00 61%
3‑4 8:1 15 1 1,960 131.00 47%
4‑5 8:1 15 1 1,960 131.00 47%
5‑6 10:1 30 1 1,960 65.00 25%
1 Salaries (5 instructors x $1,600) $8,000
Staff benefits [($8000 x 10%) + 5 x $200)] 900
Incremental costs $8,900
2 Salaries (0 instructor x $0,000) $0,000
Staff benefits [($0,000 x 10%) + (0 x $000)] 000
Incremental costs $0,000
For 1b the following should be used to help with your analysis:
Incremental revenue ($260 x 10 students) $2600
Minus incremental costs:
Instructor's salary $1600
Staff benefits [(10% x $1,600) + $200] $360
Food ($1.25 x 10 students x 22 days) $275
Variable supplies ($1 x 10 students) $10
Incremental profit $355
For 1c make...