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Topic: Student Questions
This Should Be An Easy Exercise, I Need Help
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Average revenue per student 19
Operating day/year 250
Operating expenses (indirect) $ 190.243
Total Revenue for the year $ 732.150
Total direct cost for the year $ 167.919 (23% of revenue)
School has 7 classrooms
The campus is regarded unsafe during evening and night
a. Based on the assumptions listed above, what is Kaplan IIT’s average capacity utilization (i.e., class room occupancy rate/day)?
b. Please determine the direct cost per class hour (i.e., production cost/class hour). Based on the average revenue per student/h, how many students per class are required to break even (B/E) and/or start generating additional gross profit to cover current operating expense (indirect expenses)?