costacctg13_sm_ch05

Sosmith musttrytorecruitmore students to the school

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Unformatted text preview: s and benefits Facilities cost Office staff salaries and benefits Sports program staff salaries and benefits Total No. of students Cost per student Percent of total cost by activity Academic Instruction $2,400,000 40,000 910,000 15,000 175,000 $3,540,000 500 $7,080 45% Sports Administration Training $ 800,000 $ 320,000 240,000 20,000 390,000 1,170,000 180,000 30,000 50,000 225,000 $1,660,000 $1,765,000 500 $ 3,320 21% 500 $3,530 23% Community 2006 Relationships Expenditures $480,000 $4,000,000 100,000 400,000 130,000 2,600,000 75,000 300,000 50,000 500,000 $835,000 $7,800,000 500 $1,670 11% 500 $15,600 100% The overall cost of educat ing each student is $15,600. Of this, $7,080 (or 45%) is spent on academic instruction and $3,320 (or 21%) is spent on administration. 2. Cost of ice hockey program $ 300,000 Total cost of activit ies without ice hockey program = $7,800,000 – $300,000 = $7,500,000 Per student cost of educat ional program wit hout hockey = $7,500,000 ¸ 500 = $ 15,000 Net cost of ice hockey program with $1,000 fee = $300,000 – (30 ´ $1,000) = $ 270,000 Total cost of activit ies with ice hockey program fee = $7,500,000 + $270,000 = $7,770,000 Per student cost of educat ional program wit h hockey fee = $7,770,000 ¸ 500 = $ 15,540 3. Charging a fee helps a bit but the net cost of the ice ho...
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