1

2
3
4

A COURSE OVERHEADS

B DEVELOPMENT COSTS (OVERHEADS)

6
7
8

Management (during development phase)

Management (development)
Secretarial support (development)
C DEVELOPMENT & PRODUCTION
COSTS

Type of unit
per annum salary
per annum salary

9
10
11
12

Development Print
Authoring of study guide
Preparation of a Reader
Editing and design
Copyright

Type of unit
Study guide (50 pp)
Reader (150 pp)
Per 50 pp
Per 50 pp

13

Development DVDs

Type of unit

Management (ongoing)
Secretarial support (ongoing)
Recurrent costs

Type of unit
per annum salary
per annum salary

No of
units
0.50
0.50

No of
units
1.00
0.50

Rate per unit

51000
23300

Costs ($$)
25500
11650
$37,150.00

Rate per unit

51000
23300

Costs ($$)
$51,000.00
$11,650.00

Rate per unit

2100
1800
650
1900

Costs ($$)
$25,200.00
$1,800.00
$9,750.00
$28,500.00

Rate per unit

Costs ($$)

14

Development of content

per hour

No of
units
12
1
15
15
No of
units
400

$30.00

$12,000.00

15

Instructional designer

per hour

250

$25.00

$6,250.00

16

Production

per hour

200

$20.00

$4,000.00

17

Copyright

per DVD

4
No of
units
6

$1,500.00

$6,000.00

18

Development of Assignments

Type of unit

19
20

Development of Assignments
Total fixed costs of development

Assignment

21
22

D MAINTENANCE COSTS (PART OF PRINTED MATERIAL ONLY)

23
24
25
26
27

Authoring of study guide

Per study guide
Editing and design
Per study guide
Copyright
Per study guide
Total fixed costs of maintenance
Total fixed costs of maintenance and development

2
2
2

Rate per unit

$900.00

$2,100.00
$1,800.00
$650.00

Costs ($$)
$5,400.00
$161,550.00

FD

$4,200.00
$3,600.00
$1,300.00
$9,100.00
$170,650.00

FM
F

E ANNUAL PRESENTATION COSTS (all per student)

Student Support

Type of unit

No of

Rate per unit

RC

Cost/student

28

Marking of assignment

29

Tutor (per class section of 30)

30
31
32
33
34
35

Replication and Distribution

Production study guides
Production/replication of Reader
Production/replication of DVD
Packaging and postage
Total variable cost per student

36
37

F INCOME (per student per credit)

Fee

No of students
Accumulated
Recurrent costs
FD depreciated 6 years
FM depreciated 3 years
F depreciated
FD annualized 6 years
FM annualized 3 years
F annualized/per year
F annualized (total)
Aggregate unit costs
TC=F+VxN
AC=F/N+V
Income per student
Income
Profit
Break even point

units
6

Per assignment
Per Hour and group of
30

20
No of
units
12
1
4
1

Type of unit
Per study guide
Per reader
DVD
Per mailing

Per credit point

161550
9100

26925
3033

170650
9100

28499
3030

572.13

1350

Year 1
160
160
37150
26925

($$)
$360.00

$23.00

$15.33
Cost/student
($$)
$115.20
$12.50
$55.20
$13.90
$572.13
Income per
student
$1,350.00

Rate per unit

$9.60
$12.50
$13.80
$13.90

Year 2

$60.00

$450.00

Year 3

Year 4

160
320
37150
26925

160
480
37150
26925

64075
28499

64075
28499

64075
28499

55424
341632
572.13
433174
2707
1350
216000
-217174
439

55424
341632
572.13
345065
1640
1350
432000
86935
439.19121

55424
341632
572.13
616256
1284
1350
648000
31744
439.1912067

160
640
37150
26925
3033
67108
28499
3030
58454
341632
572.13
707798
1106
1350
864000
156202
439.1912067

Year 5
160
800
37150
26925
3033
67108
28499
3030
58454
341632
572.13
799339
999
1350
1080000
280661
439.1912

TV

Year 6
160
960
37150
26925
3033
67108
28499
3030
58454
341632
572.13
890880
928
1350
1296000
405120
439.19121

Total
3360

341632

Input
Input
Input

Annualization
rate
years
amount

r
n
C

1.0%
1
1000
1.01

(1+r)

00
n

Result

Year 1
No of students
Accumulated
F annualized (total)
Aggregate unit costs
TC=F+VxN
AC=F/N+V
Income per student
Income
Profit

160
160
341632
572
433174
2707
1350
216000
-217174

Year 2
160
320
341632
572
345065
1640
1350
432000
86935

Year 3
160
480
341632
572
616256
1284
1350
648000
31744

(1+r)
a(r,n)
C*a(r,n)

(Intermediate value)
Annualization factor
Annualized amount

Year 4

Year 5

160
640
341632
572
707798
1106
1350
864000
156202

160
800
341632
572
799339
999
1350
1080000
280661

Year 6
160
960
341632
572
890880
928
1350
1296000
405120

1.0100
1.010
1010

1500000
1000000
500000
Year 1
0
-500000

Year 4
Year 1

Year 2
Year 3
Year 4
Year 5
Year 6

1400000
1200000
1000000
800000

Year 1

600000

Year 2

400000
200000

Year 3
Year 4
Year 5

0
Year 6
-200000
-400000

TC=F+VxN

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

433173.5

345065

616256.2

707797.533

799338.867

890880.2

TC=F+VxN
1000000
900000
800000
700000
600000
500000
400000
300000

TC=F+VxN

200000
100000
0
1

AC=
F/N+
V

Year 1
2707.
33458
3

Year 2
1639.7
33958

Year
3
1283
.867
083

Year
4
1105
.933
646

3000

Year
5
999.
1735
833

Year
6
928.
0002
083

AC=F/N+V

2500
2000
1500
1000
500

AC=F/N+V

0
Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

1000000
800000
600000
400000

TC=F+VxN
INCOME

200000
0
Year 1
-200000
-400000

Year 2

Year 3

Year 4

Year 5

Year 6