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Below are two sheets from  the Excel workbook that is referred to in the 606 assignment.  The first sheet is the "List of Ingredients" and the second is the "Calculation Template." (The graphs from the Excel workbook are not included here.)

LIST OF INGREDIENTS
1 A    ONE OFF DEVELOPMENT AND PRODUCTION COSTS        
2 COURSE OVERHEADS Type of unit No of units   Rate per unit     No of persons   Costs ($$)
3   Management  per annum salary 1.500 $70,000 1 $105,000
4   Secretarial support per annum salary 0.750 $23,500 1 $17,625
5 Development Print Type of unit No of units   Rate per unit       Costs ($$)
6   Authoring of study guide Study guide (50 pp) 9 $14,000 $126,000
7   Preparation of a Reader Reader (200 pp) 1 $7,600 $7,600
8   Editing and design  Per 50 pp 13 $3,900 $50,700
9   Copyright  Per 50 pp 13 $2,400 $31,200
10 Development Video-cassettes Type of unit No of units   Rate per unit       Costs ($$)
11 Copyright clearance (video material) Per 60 min 9 $9,500 $85,500
12   Production Per 60 min 9 $23,000 $207,000
13 Development Assignment  Type of unit No of units   Rate per unit       Costs ($$)
14   Assignment Per assignment 3 $350 $1,050
15 Total fixed costs of development  $631,675 FD
16 B    MAINTENANCE COSTS (PART OF PRINTED MATERIAL ONLY)      
17 Author Per study guide 2 $1,100 $2,200
18 Editing and design Per study guide 2 $2,800 $5,600
19 Total fixed costs of maintenance $7,800 FM
20 Total fixed costs $639,475 F
21 C  ANNUAL PRESENTATION COSTS (all per student)        
22 Student Support Type of unit No of units   Rate per unit       Cost/student ($$)
23   Marking of assignment  Per assignment  3 $45.00 $135.00
24   Tutor (per group of 30) Per Hour  and group of 30 12 $65.00 $26.00
25   Tuition expenses Per group of 30 1 $80.00 $2.667
26 Replication and Distribution Type of unit No of units   Rate per unit       Cost/student ($$)
27   Production study guides Per study guide 9 $8.90 $80.10
28   Production assignments Per assignment 3 $1.20 $3.60
29   Production of Reader Per reader  1 $16.00 $16.00
30   Production of cassette Per cassette 9 $12.00 $108.00
31   Packaging and postage Per mailing 3 $9.00 $27.00
32 Total variable cost per student  $398.367 V
33 D INCOME (per student per credit)         Income per student
34 Fee Per credit point 3 $420 $1,260
Louise Bailey Gussin
OMDE 606
7-Mar-07
Assignment 1 - List of Ingredients

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CALCULATION TEMPLATE
         Year 1          Year 2            Year 3             Year 4            Year 5        Total
No of students 200 200 200 200 200 1000
Accumulated 200 400 600 800 1000
Cash flow
FD depreciated (5 years) $631,675 $126,335 $126,335 $126,335 $126,335 $126,335 $126,335 $631,675
FM depreciated (2 years) $7,800 $3,900 $3,900 $3,900 $7,800
F depreciated  $126,335 $126,335 $126,335 $130,235 $130,235 $639,475
FD annualized (5 years at 5%) $631,675 $145,901 $145,901 $145,901 $145,901 $145,901 $145,901 $729,505
FM annualized  (2 years at 5%) $7,800 $4,195 $4,195 $4,195 $8,390
F annualized/per year   $145,901 $145,901 $145,901 $150,096 $150,096 $737,895
F annualized (total) $737,895 $737,895 $737,895 $737,895 $737,895 $737,895
Aggregate unit costs $398.367 $398.367 $398.367 $398.367 $398.367 $398.367
TC=F+VxN $817,568 $897,241 $976,915 $1,056,588 $1,136,261
AC=F/N+V $4,088 $2,243 $1,628 $1,321 $1,136
Income per student  $1,260 $1,260 $1,260 $1,260 $1,260 $1,260
Income $252,000 $504,000 $756,000 $1,008,000 $1,260,000
Profit -$565,568 -$393,241 -$220,915 -$48,588 $123,739
Break-even point - # students 856
Louise Bailey Gussin
OMDE 606
7-Mar-07
Assignment 1 - Calc. Template
    Annualization  
Input r rate 5.0%
Input n years 2
Input C amount $7,800
  (1+r) n (Intermediate value) 1.1025
  a(r,n) Annualization factor 0.538
Result C*a(r,n) Annualized amount  4195

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