CFOS/Costing a New Course or Programme/Exercise 6.4


 * Calculate the average cost per student over the six-year life of the course.

This particular course does not involve any face-to-face tutorials, and sufficient materials have been produced to accommodate 5% more students than included in the projection.


 * What is the marginal cost of providing the course for each additional student?

If the amount collected in fees exceeds the marginal cost, then the difference represents a ‘profit’ or a surplus for the institution.


 * Would there be any ‘profit’ or other advantage to enrolling additional students on this course?

Check your Answers>