INTRODUCTION TO Management Accounting Horngren Sundem Burgst

INTRODUCTION TO Management Accounting Horngren Sundem Burgstahler Schatzberg

Solution

1) Performance table: Final course other courses discount enrols Total Tuition revenue 2000000 6000 1000 2007000 cost of courses 800000 3000 500 803500 Contribution margin 1200000 3000 500 1203500 General admin exp 400000 Operating income 803500 2)The following Factors affects the pricing policies of these courses : a. The fees paid to the instructors / tuitors of the courses. b. The travelling and boarding of the candidates. c. The rental costs of the classrooms d. Controlling the administration costs of the courses. The courses are to be taken to other private universites for expansion purpose.