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computation of break even number of students of a

Computation of break even number of students of a college.

Houghton College is planning to begin a new graduate degree program in Mathematics. The initial startup cost for computing equipment, facilities, course development and staff recruitment is $350,000. The college plans to charge tuition for the program at $21,000 per year per student. Administration costs are expected to be $12,000 per student. In addition the College expects to pay out an average of $3,000 per student in scholarship awards.

How many students does the college need to enroll to break even?

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Corporate Finance: computation of break even number of students of a

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