Omde 606 Group Assignment 3 Spreadsheet

6 (A) COURSE OVERHEADS Type of unit No of units Rate per unit 7 Management (ongoing) per annum salary 0.30 60000 8 Secretarial support (ongoing) per annum salary 1.00 40000 9 Recurrent costs 10 (B) ONE-OFF DEVELOPMENT AND PRODUCTION COSTS 11 Development Print Type of unit No of units Rate per unit 12 Management (development) per annum salary 0.50 60000 13 Secretarial support (development) per annum salary 1.00 40000 14 Authoring of study guide Study guide (48pp) 10 1728 15 Preparation of a Reader Reader 144 1 1148 16 Editing and design Per 48 pp 13 720 17 Copyright Per 48 pp 13 1728 18 Development Cassettes Type of unit No of units Rate per unit 19 Development of content Per hour 100 40 20 Instructional design Per hour 60 25 21 Production Per hour 50 20 26 Copyright Per DVD 1 1500 27 Development Assignment Type of unit No of units Rate per unit 28 Assignment Per assignment 5 1104 29 Total fixed costs of development 30 (C) MAINTENANCE COSTS (PART OF PRINTED MATERIAL ONLY) 31 Author Per study guide 3 1728 32 Editing and design Per study guide 3 1148 33 Copyright Per study guide (updating 3 720 34 Total fixed costs of maintenance 35 Total fixed costs 36 (D) ANNUAL PRESENTATION COSTS (all per student) 37 Student Support Type of unit No of units Rate per unit 38 Marking of assignment Per assignment 5 40 39 Tutor (per group of 24) Per Hour and group of 24 30 19

Costs ($$) 18000 40000 58000 Costs ($$) 30000 40000 17280 1148 9360 22464 Costs ($$) 4000 1500 1000 1500 Costs ($$) 5520 133772 5184 3444 2160 10788 144560 Cost/student ($$) 200.00 23.75

40 Tuition expenses Per group of 24 41 Replication and Distribution Type of unit 42 Production study guides Per study guide 43 Production assignments Per assignment 44 Production of Reader Per reader 45 Packaging and postage Per mailing 46 Total variable cost per student 47 (E) INCOME (per student per credit) 48 Fee Per credit point

No of units Rate per unit Cost/student ($$) 10 8 80.00 3 16.3333333 49.00 1 12 12.00 2 15.2 30.40 395.15 Income per student 3 380 1140

Year 1 No of students Accumulated Recurring Cost FD depreciated (8 years) FM depreciated (3 years) F depreciated FD annualized (8 years at 6.5%) FM annualized (4 years at 6.5%) F annualized/per year F annualized (total) Aggregate unit costs TC=F+VxN AC=F/N+V Income per student Income Profit

Year 2

Year 3

Year 4

120 120 58000 16722

120 240 58000 16722

120 360 58000 16722

74722 21970

74722 21970

74722 21970

79970 652356 395.15 699774 5831 1140 136800 -562974

79970 652356 395.15 747192 3113 1140 273600 -473592

79970 652356 395.15 794610 2207 1140 410400 -384210

Year 5 Year 6 Year 7 120 120 120 120 480 600 720 840 58000 58000 58000 58000 16722 16722 16722 16722 3596 3596 74722 74722 78318 78318 21970 21970 21970 21970 3149 3149 3149 79970 83119 83119 83119 652356 652356 652356 652356 395.15 395.15 395.15 395.15 842028 889446 936864 984282 1754 1482 1301 1172 1140 1140 1140 1140 547200 684000 820800 957600 -294828 -205446 -116064 -26682

Costs and income Total costs

936864 889446 842028

820800

794610 747192

Fixed costs

699774 652356

652356

652356

684000 652356

652356

652356

547200

Break even point

$$

410400

273600

me o c In 136800

120

240

F annual ized (total )

360

No students Linea r (F annual ized (tota l))

480

TC=F+VxN

600

Income

720

Average costs per student

5831

Variable cost per student

3113

2207 1754 1482

395 120

Average costs per student

1301

395

395

395

395

395

240

360

480

600

720

No students Aggregate uni t costs

AC=F/N+V

Li near (AC=F/N+V)

Year 1 No of students Accumulated F annualized (total) Aggregate unit costs TC=F+VxN AC=F/N+V Income per student Income Profit

Year 2 120 120 652356 395 699774 5831 1140 136800 -562974

120 240 652356 395 747192 3113 1140 273600 -473592

Year 3 120 360 652356 395 794610 2207 1140 410400 -384210

Year 4 120 480 652356 395 842028 1754 1140 547200 -294828

Year 5 120 600 652356 395 889446 1482 1140 684000 -205446

Year 6 120 720 652356 395 936864 1301 1140 820800 -116064

Year 7 120 840 652356 395 984282 1172 1140 957600 -26682

Year 8 120 960 652356 395 1031700 1075 1140 1094400 62700