Problem $3-61($Algo$)$ CVP Analysis$-$Sensitlvity Analysls $($spreadsheet recommended$)($LO $3-1)$

Conrad Coding Institute $($CCl$)$ offers online courses in coding. One of CCl$\text{'}$s most popular courses is the introductory course that

teaches basic coding skills. CCl prices this course aggressively, because of the potential for creating demand for the more advanced

$($and more profitable$)$ courses. The introductory coding course has the following price and cost characteristics:

Tuition

$$75$ per student

Variable costs $($instruction$,$ support, and so on$)$

$50$ per student

Fixed costs $($advertising$,$ salaries, and so on$)181,890$ per year

Requlred:

$.$ What enrollment will enable $CCl$ to break even?

b$.$ How many students will enable CCI to make an operating profit of $$30,900$ from the introductory coding course for the year?

c$.$ Assume that the projected enrollment for the year is $7,536$ students for each of the following $($considered independently$)$:

What will be the operating profit $($for $7,536$ students$)?$

What would be the operating profit if the tuition per student $($that is$,$ sales price$)$ decreased by $20$ percent? Increased by $10$

percent?

What would be the operating profit if variable costs per student decreased by $20$ percent? Increased by $10$ percent?

Suppose that fixed costs for the year are $15$ percent lower than projected, whereas variable costs per student are $15$ percent

higher than projected. What would be the operating profit$/$loss for the introductory coding course for the year?

Complete this question by entering your answers in the tabs below.

Req C$1$

ReqC$2$

Req C$3$

Req C$4$

What enrollment will enable CCI to break even?

Break$-$even point

students