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You are the director of continuing education programs for a state university.




You are the director of continuing education programs for a state university. Courses for;executives;are especially popular, and you have developed an extensive menu of one-day and two-day;courses;that are presented in various locations throughout the state. The performance of these courses;for the;current fiscal year, excluding the final course, which is scheduled for the next Saturday, is as;follows;Tuition revenue;Costs of courses;Contribution margin;General administrative expenses;Operating income;$2,000,000;800,000;$1, 200,000;400,000;$ 800,000;The costs of the courses include fees for instructors, rentals of classrooms, advertising;and any;other items, such as travel, that can be easily and exclusively identified as being caused by a;particular course.;The general administrative expenses include your salary, your secretarys compensation;and;related expenses, such as a lump-sum payment to the universitys central offices as a share of;university overhead.;The enrollment for your final course of the year is 30 students, who have paid $200;each. Two;days before the course is to begin, a city manager telephones your office. Do you offer;discounts to;nonprofit institutions? he asks. If so, well send 10 managers. But our budget will not justify our;spending more than $100 per person. The extra cost of including these 10 managers would;entail;lunches at $20 each and course materials at $30 each.;Required;1. Prepare a tabulation of the performance for the full year including final course. Assume;that the costs of the final course for the 30 enrollees instruction, travel, and advertising;rental of hotel classroom, lunches, and course materials would be $3,000.;2. What major considerations would probably influence the pricing policies for these;courses?;Taken from: Introduction to Management Accounting. Fifteenth Edition 2011. Horngren;Sundem, Stratton, Burgstahler, Achatzberg. Prentice Hall


Paper#26957 | Written in 18-Jul-2015

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