A "Philosophy and The Simpsons: From Socrates to Homer" DEVELOPMENT AND PRODUCTION COSTS

COURSE OVERHEADS Type of unit No of units Rate per unit No of years No of persons
Course Designer Per Annum Salary 0.250 68000 2 2
SME - Adjunct Professor Per Annum Salary 0.250 58000 2 1
Administrative Support Per Annum Salary 0.250 40000 2 2
Development Print Type of unit No of units Rate per unit
Authoring of Study Guides Study Guide (50 pp) 10 6800
Authoring of a Reader Reader (250 pp) 1 4500
Editing and Design Per 50 pp w/reader 15 3400
Copyright Clearance Per 50 pp w/reader 15 3000
Development DVD Type of unit No of units Rate per unit
Development of DVD Per DVD master 1 1000
Development Assignment Type of unit No of units Rate per unit
Development of Assignment Per Assignment w/exams 7 250
Total fixed costs of development
B MAINTENANCE COSTS (PART OF PRINTED MATERIAL ONLY)
Author Per Study Guide 3 4200
Editing and Design Per Study Guide 3 3400
Total fixed costs of maintenance
Total fixed costs
C ANNUAL PRESENTATION COSTS (all per student)
Student Support Type of unit No of units Rate per unit
Marking of Assignment Per Assignment 7 55
Mentor (per group of 15) Per Hour and Group of 25 8 70
Mentor Expenses Per Group of 25 1 125
Replication and Distribution Type of unit No of units Rate per unit
Production of Study Guides Per Study Guide 10 3.20
Production of Assignments Per Supplemental unit 7 2.15
Production of Reader Per Reader 1 5.6
Replication of DVD Per DVD 1 19.95
Packaging and Postage Per Mailing 3 5.4
Total variable cost per student Total variable cost per student
D INCOME (per student per credit)
Fee Per Credit Point 3 1043
 Costs ($$)
68000
29000
40000
Costs ($$)
68000
4500
51000
45000
Costs ($$)
1000
Costs ($$)
1750
308250

12600
10200
22800
331050

Cost/student ($$)
385.00
560.00
125.00
Cost/student ($$)
32.00
15.05
5.60
19.95
16.20
1158.80
Income per student
3129
 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total
No of students 180 180 180 180 180 180 180 1260
Accumulated 180 360 540 720 900 1080 1260
Cash flow
FD depreciated (7 years) 308250 44036 44036 44036 44036 44036 44036 44036 44036
FM depreciated (4 years) 22800 5700 5700 5700 5700 5700
F depreciated 331050 44036 44036 44036 49736 49736 49736 49736 331052
FD annualized (7 years at 6.5%) 89979 89979 89979 89979 89979 89979 89979 89979
FM annualized (3 years at 6.5%) 6655 6655 6655 6655 6655
F annualized/per year 89979 89979 89979 96634 96634 96634 96634 656473
F annualized (total) 656473 656473 656473 656473 656473 656473 656473
Aggregate unit costs 1158.80 1158.80 1158.80 1158.80 1158.80 1158.80 1158.80 1158.80
TC=F+VxN 865057 1073641 1282225 1490809 1699393 1907977 2116561
AC=F/N+V 4806 2982 2374 2071 1888 1767 1680
Income per student 3129 3129 3129 3129 3129 3129 3129 3129
Income 563220 1126440 1689660 2252880 2816100 3379320 3942540
Profit 301837 52799 407435 762071 1116707 1471343 1825979
 Year 1 Year 2 Year 3
No of students 180 180 180
Accumulated 180 360 540
F annualized (total) 656473 656473 656473 656473
Aggregate unit costs 1158.80 1158.80 1158.80 1158.80
TC=F+VxN 865057 1073641 1282225
AC=F/N+V 4806 2982 2374
Income per student 3129 3129 3129 3129
Income 563220 1126440 1689660
Year 4 Year 5 Year 6 Year 7 Total
180 180 180 180
720 900 1080 1260 1260
656473 656473 656473 656473
1158.80 1158.80 1158.80 1158.80
1490809 1699393 1907977 2116561
2071 1888 1767 1680
3129 3129 3129 3129
2252880 2816100 3379320 3942540
 4500000

4000000

3500000

3000000

$
$ 2500000

2000000

1500000

360
1000000

500000

0
180 360 540 720 900 1080
No of Students
900 1080TC=F+VxN 1260
F annualized (total)
Linear (F annualized (total))
Linear (F annualized (total))
Income
 6000
A
v
e
r 5000
a
g
e
4000
c
o
s
t
3000
p
e
r
2000
s
t
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d 1000
e
n
t
0
180 360 540 720 900 1080
No of Students
AC=F/N+V
Aggregate un
900 1080 1260
AC=F/N+V
Aggregate unit costs