How many students does the college need to enroll

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The College of Business Tech is planning to begin an online MBA program. The initial start-up cost for computing equipment, facilities, course development, and staff recruitment and development is $350,000. The college plans to charge tuition fees of $18,000 per student per year. However, the university administration will charge the college $12,000 per student for the first 100 students enrolled each year for administrative costs and its share of the tuition payments.

Question 1 : How many students does the college need to enroll in the first year to break even?

Question 2 : If the college can enroll 75 students the first year, how much profit will it make?

Question 3 : The college believes it can increase tuition to $25,000, but doing so would reduce enrolment to 35. Should the college consider doing this?

Reference no: EM133190474

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