ACCT 323 Comprehensive Project

Assume you are the Controller for Gawronski Home Renovation Superstore. Gawronski sells products to many people remodeling their homes. The marketing team thinks that Gawronski could profitably offer courses on tile installation, which might also increase the demand for their products.

You have asked your Staff Accountant to work with the marketing team to gather cost data on this new idea. Your Staff Accountant has determined that the basic installation course has the following (tentative) price and cost characteristics:

The CFO has asked you to prepare an analysis on the proposed basic installation course. You determine the following items must be discussed:

1. What the operating profit will be given the above data.

What would be the operating profit if the tuition per student (that is, sales price) decreased by 10 percent?

What would be the operating profit if the tuition per student increased by 20 percent?

What would be the operating profit if variable costs per student decreased by 10 percent?

What would be the operating profit if variable costs per student increased by 20 percent?

What would be the operating profit if fixed costs for the year are 10 percent lower than projected, whereas variable costs per student are 10 percent higher than projected?

What would be the operating profit if only 450 students enrolled?