Question: Conrad Coding Institute (CCI) offers online courses in coding. One of CCI's most popular courses is the introductory course that teaches basic coding skills. CCI

Conrad Coding Institute (CCI) offers online courses in coding. One of CCI's most popular courses is the introductory course that teaches basic coding skills. CCI prices this course aggressively, because of the potential for creating demand for the more advanced (and more profitable) courses. The introductory coding course has the following price and cost characteristics:

Tuition $ 70 per student
Variable costs (instruction, support, and so on) 45 per student
Fixed costs (advertising, salaries, and so on) 180,200 per year

  1. What enrollment will enable CCI to break even?
  2. How many students will enable CCI to make an operating profit of $30,100 from the introductory coding course for the year?

C. Assume that the projected enrollment for the year is 7,504 students for each of the following (considered independently):

  1. What will be the operating profit (for 7,504 students)?
  2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 20 percent? Increased by 10 percent?
  3. What would be the operating profit if variable costs per student decreased by 20 percent? Increased by 10 percent?
  4. Suppose that fixed costs for the year are 15 percent lower than projected, whereas variable costs per student are 15 percent higher than projected. What would be the operating profit/loss for the introductory coding course for the year?

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