HW 21 - $92,000.00 2 No, they should not since they will be...

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Jack Meehan 11/27/2007 Accounting 152 Ivy Universtiy Section 11 Ivy University, Page 47 Students planning on attending = 15 discontinued tuition = $20,000.00 discontinued Revenue $300,000.00 discontinued Salary per Prof $75,000.00 Professors 2 Salary of Adjunct $30,000.00 discontinued Adjuncts 2 discontinued Revenue addt Scholarship per student = $8,000.00 Additional students = 10 Expenditures addt Additional admissions worker $10,000.00 Var cost per student 1800 1 Additional Revenue $120,000.00 Additional Fixed Expenses $10,000.00 Additional Var Expenses $18,000.00 Change in NOI
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Unformatted text preview: $92,000.00 2 No, they should not since they will be there whether the scholarship is offered or not 3 Yes, it doesn't consider any outside revenue that the students bring in 4 Yes, since the sunk costs have already been incurred, you are strictly going over the variable costs. You can accept a lower price per student since they are covering the additional variable costs. 5 Change in Revenue $(240,000.00) Change in Adjuct Faculty $60,000.00 Change in Supplies $21,600.00 Change in NOI $(158,400.00)...
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This homework help was uploaded on 04/07/2008 for the course ACCT 152 taught by Professor Bayak during the Spring '07 term at Lehigh University .

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HW 21 - $92,000.00 2 No, they should not since they will be...

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