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Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current students to borrow from a school's alumni community. StuFi's rev- enue model is to take an upfront fee of 40 basis points (0.40%) eachfrom the alumni investor and the student borrower for every loan originated on its platform. StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. StuFi's budgeted and actual results for the third quarter of 2017 are presented below. Page Layout в Insert Formulas Data Review View Home Static Budget Actual Results 1. New loans originated Average amount of loan Variable costs per loan: Professional labor Credit verification 8,200 10,250 $145,000 $162,000 4 $360 (8 hrs at $45 per hour) $475 (9.5 hrs at $50 per hour) $100 $100 Federal documentation fees $125 $120 Courier services 9 Administrative costs (fixed) 10 Technology costs (fixed) $50 $800,000 $1,300,000 $54 $945,000 $1,.415,000

Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current students to borrow from a school's alumni community. StuFi's rev- enue model is to take an upfront fee of 40 basis points (0.40%) eachfrom the alumni investor and the student borrower for every loan originated on its platform. StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. StuFi's budgeted and actual results for the third quarter of 2017 are presented below. Page Layout в Insert Formulas Data Review View Home Static Budget Actual Results 1. New loans originated Average amount of loan Variable costs per loan: Professional labor Credit verification 8,200 10,250 $145,000 $162,000 4 $360 (8 hrs at $45 per hour) $475 (9.5 hrs at $50 per hour) $100 $100 Federal documentation fees $125 $120 Courier services 9 Administrative costs (fixed) 10 Technology costs (fixed) $50 $800,000 $1,300,000 $54 $945,000 $1,.415,000

Essentials of Business Analytics (MindTap Course List)
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter5: Probability: An Introduction To Modeling Uncertainty
Section: Chapter Questions
Problem 6P: More than 40 million Americans are estimated to have at least one outstanding student loan to help...
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Q.What factors would you consider in evaluating the effectiveness of professional labor in the third quarter of 2017?

Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current students to borrow from a school's alumni community. StuFi's rev- enue model is to take an upfront fee of 40 basis points (0.40%) eachfrom the alumni investor and the student borrower for every loan originated on its platform. StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. StuFi's budgeted and actual results for the third quarter of 2017 are presented below. Page Layout в Insert Formulas Data Review View Home Static Budget Actual Results 1. New loans originated Average amount of loan Variable costs per loan: Professional labor Credit verification 8,200 10,250 $145,000 $162,000 4 $360 (8 hrs at $45 per hour) $475 (9.5 hrs at $50 per hour) $100 $100 Federal documentation fees $125 $120 Courier services 9 Administrative costs (fixed) 10 Technology costs (fixed) $50 $800,000 $1,300,000 $54 $945,000 $1,.415,000
Transcribed Image Text:Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current students to borrow from a school's alumni community. StuFi's rev- enue model is to take an upfront fee of 40 basis points (0.40%) eachfrom the alumni investor and the student borrower for every loan originated on its platform. StuFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. StuFi's budgeted and actual results for the third quarter of 2017 are presented below. Page Layout в Insert Formulas Data Review View Home Static Budget Actual Results 1. New loans originated Average amount of loan Variable costs per loan: Professional labor Credit verification 8,200 10,250 $145,000 $162,000 4 $360 (8 hrs at $45 per hour) $475 (9.5 hrs at $50 per hour) $100 $100 Federal documentation fees $125 $120 Courier services 9 Administrative costs (fixed) 10 Technology costs (fixed) $50 $800,000 $1,300,000 $54 $945,000 $1,.415,000
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