Operating profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Variable costs (instruction, support, and so on)
Fixed costs (advertising, salaries, and so on)
Required:
4. Suppose that fixed costs for the year are 15 percent lower than projected, whereas variable costs per swuent
are 15 percent higher than projected. What would be the operating profit/loss for the Introductory coding
course for the year?
Complete this question by entering your answers in the tabs below.
Req A
Req B
Operating profit
Req C1
Req C2
$ 65 per student
40 per student
180,000 per year
Req C3
< Req C3
Assume that the projected enrollment for the year is 7,500 students for the following (considered independently):
C4. 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?
Reg C4
Req C4 >
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