1 A COURSE OVERHEADS

Type of unit

2 Management (ongoing)

per annum salary

0.25

62000

15,500.00

3 Secretarial support (ongoing)

per annum salary

1.00

25600

25,600.00

No of units

4 Recurrent costs
5 B ONE-OFF DEVELOPMENT AND PRODUCTION COSTS
6 Development Print
Type of unit
No of units
7 Management (development)
per annum salary
0.50
8 Secretarial support (development)
per annum salary
1.00
9 Authoring of study guide
Study guide (50 pp)
10
10 Preparation of a Reader
Reader (150 pp)
1
11 Editing and design
Per 50 pp
13
12 Copyright
Per 50 pp
13
13 Development DVDs
Type of unit
No of units
14 Development of DVDs
Per 60 min
360
15 Instructional Design
Per 60 min
225
16 Production
Per 60 min
180
Copyright
3
17 Development Assignment
Type of unit
No of units
18 Assignment
Per assignment
5
19 Total fixed costs of development
20 C MAINTENANCE COSTS (PART OF PRINTED MATERIAL ONLY)
21 Author
Per study guide
3
22 Editing and design
Per study guide
3
Copyright
3
23 Total fixed costs of maintenance
24 Total fixed costs
25 D ANNUAL PRESENTATION COSTS (all per student)
26 Student Support
Type of unit
No of units
27 Marking of assignment
Per assignment
5
28 Tutor (per group of 25)
Per Hour and group of 25
30
29 Tuition expenses
Per group of 25
0
30 Replication and Distribution
Type of unit
No of units
31 Production study guides
Per study guide
10
32 Production assignments
Per assignment
0

Rate per unit

Costs ($$)

41,100.00
Rate per unit
62000
25600
1800
1200
750
1800
Rate per unit
25
20
15
1200
Rate per unit
750

Costs ($$)
31,000.00
25,600.00
18,000.00
1,200.00
9,750.00
23,400.00
Costs ($$)
9,000.00
4,500.00
2,700.00
3,600.00
Costs ($$)
3,750.00
132,500.00

1800
1200
750

5,400.00
3,600.00
2,250.00
11,250.00
143,750.00

Rate per unit

40
19
0
Rate per unit
8.8
0

Cost/student ($$)
200.00
22.80
Cost/student ($$)
88.00
-

33
34
35
36
37
38

Production of Reader
Production of cassette
Packaging and postage
Total variable cost per student
E INCOME (per student per credit)
Fee

Per reader
Per cassette
Per mailing

1
3
2

Per credit point

12
16.6
15.2

12.00
49.80
30.40
403.00
Income per student
380
1,140.00

Year 1
No of students
Accumulated
R
41100
FD depreciated (8 years)
132500
FM depreciated (4 years)
11250
F depreciated
FD annualized (8 years at 6.2%) 132500
FM annualized (4 years at 6.2%) 11250
F annualized/per year
F annualized (total)
Aggregate unit costs
TC=F+VxN
AC=F/N+V
Income per student
Income
Profit

41100
16563
2813
21506
3262

403.00

1140

Year 2

Year 3

Year 4

Year 5

180
180
41,100
16563

180
360
41,100
16563

180
540
41,100
16563

180
720
41,100
16563

57,663
21,506

57,663
21,506

57,663
21,506

57,663
21,506

62,606
513,896
403
586,436
3,258
1,140
205,200
(381,236)

62,606
513,896
403
658,976
1,830
1,140
410,400
(248,576)

62,606
513,896
403
731,516
1,355
1,140
615,600
(115,916)

62,606
513,896
403
804,056
1,117
1,140
820,800
16,744

180
900
41,100
16563
2813
60,475
21,506
3,262
65,868
513,896
403
876,596
974
1,140
1,026,000
149,404

Year 6
180
1080
41,100
16563
2813
60,475
21,506
3,262
65,868
513,896
403
949,136
879
1,140
1,231,200
282,064

Year 7
180
1260
41,100
16563
2813
60,475
21,506
3,262
65,868
513,896
403
1,021,676
811
1,140
1,436,400
414,724

Year 8
180
1440
41,100
16563
2813
60,475
21,506
3,262
65,868
513,896
403
1,094,216
760
1,140
1,641,600
547,384

Total

513896

3,500
3,258

3,000

Average costs per

student

Average costs per student

2,500

2,000

1,830

1,500

1,355
1,117
974

1,000

879

811

Variable cost per

student

760

500

180

360

540

720

900
No students

Aggregate unit costs

1,080

AC=F/N+V

1,260

1,440

1,800,000

Costs and income

1,600,000

1,400,000

Income

1,200,000

1,094,216

1,000,000

Total costs
$$

800,000
586,436

600,000

400,000

200,000

Break even
point - 697

180

360

540

720

900

No students
TC=F+VxN

Income

1,080

1,260

Year 1
No of students
Accumulated
F annualized (total)
Aggregate unit costs
TC=F+VxN
AC=F/N+V
Income per student
Income
Profit

180
180
513,896
403
586,436
3,258
1,140
205,200
(381,236)

Year 2
180
360
513,896
403
658,976
1,830
1,140
410,400
(248,576)

Year 3
180
540
513,896
403
731,516
1,355
1,140
615,600
(115,916)

Year 4
180
720
513,896
403
804,056
1,117
1,140
820,800
16,744

Year 5
180
900
513,896
403
876,596
974
1,140
1,026,000
149,404

Year 6
180
1,080
513,896
403
949,136
879
1,140
1,231,200
282,064

Year 7
180
1,260
513,896
403
1,021,676
811
1,140
1,436,400
414,724

Year 8
180
1,440
513,896
403
1,094,216
760
1,140
1,641,600
547,384