CFOS/Student Fees/Exercise 11.2 - Sample Answers

<Return to Unit 11

<Return to Exercise 11.2

Exercise 11.2 - ANSWER SHEET
Setting fees on the basis of alternative services in the market, a fixed percentage of cost recovery or changes in the Consumer Price Index all yield figures that are lower than the marginal cost of enrolling additional students. This means that SISA will need to negotiate an additional subsidy from government for each learner it enrols beyond the target of 1,200.