Case Study on Lihue University

Lihue University Lihue University was formed in 1898 in Columbus, Ohio. While the university has prospered over the years, it has been losing money for the last several years. The president of the university has established a Strategic Leadership Team, (SLT) to evaluate the current financial situation and offer alterative strategies for improvement. One of the key issues identified by the SLT was increasing levels of student enrollment. Presently, Lihue University is trying to decide whether to allow 100 additional students into the university. Tuition is set at $5,500 per year. The controller has determined a schedule of costs to educate students at various enrollment levels. At 5000 students the university’s total costs equal $30,000,000; at 5100 students the university’s total costs equal $30,300,000; at 5200 students the university’s total costs equal $30,600,000; and at 5300 students the university’s total costs equal $30,900,000. The current level of enrollment at the university is 5200 students. The president of the university has calculated the cost per student in the following manner: $30,600,000 / 5200 students = $5,885 per student. The president was wondering why the university should accept more students if the tuition is only $5,500. “It seems to me that we would be losing $385 per additional student”, the president was overheard saying to an SLT member.

Required: 1. What are the total fixed costs of operating the university?

Don't use plagiarized sources. Get Your Custom Essay on
Case Study on Lihue University
Just from $10/Page
Order Essay

2. What are the variable cost and contribution margin per student at the university?

3. What is the breakeven point in terms of units and tuition revenue dollars for Lihue University?

4. Should the additional 100 students be admitted to the university and what is your rationale?

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
error: Content is protected !!
Open chat
You can contact our live agent via WhatsApp! Via +1 817 953 0426

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code STARS