Imperial Law College, a private university in Bangladesh, is preparing a planned income statement for the academic
Question:
Imperial Law College, a private university in Bangladesh, is preparing a planned income statement for the academic year ending on July 31, 2021. The course fees for the past two years ending July 31 were BDT 460,000 in 2020 and BDT 420,000 in 2019. Total expenses for 2020 and 2019 were BDT 425,000 and BDT 411,000, respectively. There was no change in the course fee in 2019 and 2020 and it is likely to remain unchanged in 2021 as well. The university expects the revenue from course fee of 2021 to be BDT 480,000. What net income should be planned for 2021, assuming that the implied cost behavior remains unchanged in 2021? What will be the break-even course fee revenue?
Step by Step Answer:
Introduction To Management Accounting
ISBN: 9781292412566
17th Edition, Global Edition
Authors: Charles Horngren, Gary L Sundem, Dave Burgstahler