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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