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Group 4 ECON 623 Online Course Proposal Cost Analysis Calculations

A COURSE OVERHEADS

Type of unit

No of units

Rate per unit

Costs ($$)

Justification

Management (Ongoing)

Per Annum Salary

0.25

$62,000.00

$15,500.00

Secretarial Support (Ongoing)


Media Specialist (Ongoing)

Per Annum Salary


Per Annum Salary

1.00
0.25

$35,330.00
$55,370.00

$35,330.00
$13,842.50

Per Annum Salary

1.00

$68,900.00

$68,900.00
$133,572.50 R

Instructor
Recurrent costs

Changes Made

Maintained to support minimal material updates from year to year as trends change

Units changed
Units changed, $$ adjusted from research
Added for assitance with student reseach needs within the course materials
$$ from Riesett research
Added to present materials, interact with students and futher discussions through out each $$ from Riesett research

B DEVELOPMENT COSTS (OVERHEADS)


Management (During Development Phase)

Type of unit

No of units

Rate per unit

Costs ($$)

Management (Development)

Per Annum Salary

0.75

$62,000.00

$46,500.00

Secretarial Support (Development)


Content Expert

Per Annum Salary


Per Annum Salary

1.00
0.50

$35,330.00
$33,000.00

$35,330.00
$16,500.00

Web Designer (Development)

Per Annum Salary

$55,000.00

$27,500.00

0.50

C DEVELOPMENT & PRODUCTION COSTS


Development of Module
Content Development

Type of unit
Per Hour

Instructional Designer

Per Hour

225

$20.00

$4,500.00

Production
Copyright

Per Hour
Per Module

150
5

$15.00
$1,200.00

$2,250.00
$6,000.00

Development of video lectures


Script Writing

Type of Unit
Per Video

Production Efforts

Per Video

Editing and Uploading


Development of Assignments

Per Video
Type of unit

Development of Assignments
Total fixed costs of development

Assignment

D MAINTENANCE COSTS (Module Updates Conducted Every 4 Years)


Updating Module Materials
Editing and Design
Total fixed costs of maintenance
Total fixed costs

No of units
360

Rate per unit Costs ($$)


$25.00
$9,000.00

No of units
Rate per unit
Costs ($$)
15
$50.00
$750.00
15
15
No of units
5

$100.00

$1,500.00

$100.00
$1,500.00
Rate per unit Costs ($$)
$750.00

$3,750.00
$155,080.00 FD

No of units
15
15

Rate per unit Costs ($$)


$300.00
$4,500.00
$300.00
$4,500.00
$9,000.00 FM
$164,080.00 F

Type of unit
Per Assignment
Per Module
Per Hour

No of units
5
15
30

Per Credit Point

No of units
3

Rate per unit Cost/Student ($$)


$7.00
$35.00
$13.13
$196.95
$13.13
$15.76
$247.71 V
Rate per unit Income/Student ($$)
$458.00
$1,374.00 I

Per Module
Per Module

Units changed
$$ from Riesett research
$$ from http://www.glassdoor.com/Salaries/web-designer-salary-SRCH_KO0,12.htm
$$ from http://www.glassdoor.com/Salaries/web-designer-salary-SRCH_KO0,12.htm

Postion added to suport content research and authenticity of modules


Course will be run online with 5 modules
Print Materials costs removed
24 hours of development per 15 weeks broken into 5
modules
15 hours of work per 15 weeks broken into 5 modules
10 hours per week broken into 5 modules
Copyright efforts added per module (considering each as
one piece of work)

NOT CHANGED
NOT CHANGED
Number of units changed
Number of units changed

If we go with 5 modules for the 5 assignments we have listed we may want to consider decreasing the number of hours here

$$ gathered from personal correspondence Sstender


$$ gathered from personal correspondence Sstender
$$ gathered from personal correspondence Sstender

Added to support variable learning styles and culture.


Discussion should be tied to our course.
5 assignments to wrap up each module

A major update will be needed of materials after year four to support the ever changing
nature of economics and environmental concerns. For years 1-4 minimal data updates
will be completed.

E ANNUAL PRESENTATION COSTS (All Per Student)


Student Support
Marking of Assignment (TA)
Host Synchronous Group Tutorial (WebEX) (TA)
Tutor - Active Hours w/Students in Class (TA)
Total variable cost per student
F INCOME (Per Student Per Credit)
Fee

Class of 25

Class of 30
$35.00
$7.88
15.756
$58.63

Class of 35
$35.00
$6.57
13.13
$54.70

Class of 40
$35.00
$5.63
11.2542857143
$51.88

$35.00
$4.92
9.8475
$49.77

Changed to support a variable number of students in each section.


I would suggest that we state an optimal number of 30 student per
class since having full sections for each number does not seem to
change the break even point. $$ for TA hourly rate determined
aassuming 3 semesters: $23640 per year for 45 weeks worth of
active class time that's 525.33 per week divided into 40 hours =
$13.13 per hour

Year 1

No of students

number of
students per Number of
section
sections
25
9

Accumulated
Recurrent Cost
FD depreciated (8 years)
FM depreciated (4 years)
F depreciated
FD annualized (8 years @ 6.2%
FM annualized (4 years @ 6.2%
F annualized/per year
F annualized (total)
Aggregate unit costs
TC=F+VxN
AC=F/N+V
Income per student
Income
Profit

155080
9000

133573
27023
2609

155080
9000

25171
3262

58.63

1374

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Total

225

225

225

225

225

225

225

225

225
133573
27023

450
133573
27023

675
133573
27023

900
133573
27023

160596
25171

160596
25171

160596
25171

160596
25171

158744
1282994
58.63
1296187
5761
1374
309150
-987037

158744
1282994
58.63
1309379
2910
1374
618300
-691079

158744
1282994
58.63
1322572
1959
1374
927450
-395122

158744
1282994
58.63
1335765
1484
1374
1236600
-99165

1125
133573
27023
2609
163205
25171
3262
162005
1282994
58.63
1348957
1199
1374
1545750
196793

1350
133573
27023
2609
163205
25171
3262
162005
1282994
58.63
1362150
1009
1374
1854900
492750

1575
133573
27023
2609
163205
25171
3262
162005
1282994
58.63
1375343
873
1374
2164050
788707

1800
133573
27023
2609
163205
25171
3262
162005
1282994
58.63
1388535
771
1374
2473200
1084665

1282994

Year 1

No of students

number of
students per Number of
section
sections
30
9

Accumulated
Recurrent Cost
FD depreciated (8 years)
FM depreciated (4 years)
F depreciated
FD annualized (8 years @ 6.2%
FM annualized (4 years @ 6.2%
F annualized/per year
F annualized (total)
Aggregate unit costs
TC=F+VxN
AC=F/N+V
Income per student
Income
Profit

155080
9000

133573
19385
2250

155080
9000

25171
3262

54.70

1374

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Total

270

270

270

270

270

270

270

270

270
133573
19385

540
133573
19385

810
133573
19385

1080
133573
19385

152958
25171

152958
25171

152958
25171

152958
25171

158744
1282994
54.70
1297762
4807
1374
370980
-926782

158744
1282994
54.70
1312529
2431
1374
741960
-570569

158744
1282994
54.70
1327297
1639
1374
1112940
-214357

158744
1282994
54.70
1342065
1243
1374
1483920
141855

1350
133573
19385
2250
155208
25171
3262
162005
1282994
54.70
1356832
1005
1374
1854900
498068

1620
133573
19385
2250
155208
25171
3262
162005
1282994
54.70
1371600
847
1374
2225880
854280

1890
133573
19385
2250
155208
25171
3262
162005
1282994
54.70
1386368
734
1374
2596860
1210492

2160
133573
19385
2250
155208
25171
3262
162005
1282994
54.70
1401135
649
1374
2967840
1566705

1282994

Year 1

No of students

number of
students per Number of
section
sections
35
9

Accumulated
Recurrent Cost
FD depreciated (8 years)
FM depreciated (4 years)
F depreciated
FD annualized (8 years @ 6.2%
FM annualized (4 years @ 6.2%
F annualized/per year
F annualized (total)
Aggregate unit costs
TC=F+VxN
AC=F/N+V
Income per student
Income
Profit

155080
9000

133573
25171
2250

155080
9000

21506
3262

51.88

1374

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Total

315

315

315

315

315

315

315

315

315
133573
25171

630
133573
25171

945
133573
25171

1260
133573
25171

158744
21506

158744
21506

158744
21506

158744
21506

155079
1253678
51.88
1270021
4032
1374
432810
-837211

155079
1253678
51.88
1286363
2042
1374
865620
-420743

155079
1253678
51.88
1302706
1379
1374
1298430
-4276

155079
1253678
51.88
1319048
1047
1374
1731240
412192

1575
133573
25171
2250
160994
21506
3262
158341
1253678
51.88
1335391
848
1374
2164050
828659

1890
133573
25171
2250
160994
21506
3262
158341
1253678
51.88
1351734
715
1374
2596860
1245126

2205
133573
25171
2250
160994
21506
3262
158341
1253678
51.88
1368076
620
1374
3029670
1661594

2520
133573
25171
2250
160994
21506
3262
158341
1253678
51.88
1384419
549
1374
3462480
2078061

1253678

Year 1

No of students

number of
students per Number of
section
sections
40
9

Accumulated
Recurrent Cost
FD depreciated (8 years)
FM depreciated (4 years)
F depreciated
FD annualized (8 years @ 6.2%
FM annualized (4 years @ 6.2%
F annualized/per year
F annualized (total)
Aggregate unit costs
TC=F+VxN
AC=F/N+V
Income per student
Income
Profit

155080
9000

133573
25171
2250

155080
9000

21506
3262

49.77

1374

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Total

360

360

360

360

360

360

360

360

360
133573
25171

720
133573
25171

1080
133573
25171

1440
133573
25171

158744
21506

158744
21506

158744
21506

158744
21506

155079
1253678
49.77
1271596
3532
1374
494640
-776956

155079
1253678
49.77
1289513
1791
1374
989280
-300233

155079
1253678
49.77
1307431
1211
1374
1483920
176489

155079
1253678
49.77
1325348
920
1374
1978560
653212

1800
133573
25171
2250
160994
21506
3262
158341
1253678
49.77
1343266
746
1374
2473200
1129934

2160
133573
25171
2250
160994
21506
3262
158341
1253678
49.77
1361184
630
1374
2967840
1606656

2520
133573
25171
2250
160994
21506
3262
158341
1253678
49.77
1379101
547
1374
3462480
2083379

2880
133573
25171
2250
160994
21506
3262
158341
1253678
49.77
1397019
485
1374
3957120
2560101

1253678

Breakeven Point for Class Size of 25

2500000

Income

$$$$$

2000000

Total costs
1500000

Total
Cost

1000000

Breakeven
Break
even point
point
N= 975.39
4.33 years

500000

0
0

200

400

600

800
1000
1200
Number of Students

1400

1600

1800

Average and Variable Cost per Student Class Size of 25

Cost Per Student

6000

5000

Average Cost Per Student


4000

Power (Average Cost Per


Student)

3000

2000

1000

0
0

200

400

600

800

1000
1200
Number of Students

1400

1600

1800

2000

Breakeven Point for Class Size of 30

3500000

$$$$$

3000000

Income
2500000

2000000

Total costs
Total
Cost

1500000

Breakeven
point
N=972.48
3.60 years

1000000

500000

0
0

500

1000
1500
Number of Students

2000

2500

Average and Variable Cost per Student Class Size of 30

5000

Cost Per Student

4500
4000
Average Cost Per Student

3500

Power (Average Cost Per


Student)

3000
2500
2000
1500
1000
500
0
0

500

1000
1500
Number of Students

2000

2500

Breakeven Point for Class Size of 35

4000000

3500000

$$$$$

Income
3000000

2500000

2000000

Total costs

Total
Cost

1500000

1000000

Breakeven
point
N= 948.23
3.01 years

500000

0
0

500

1000

1500
2000
Number of Students

2500

3000

Average and Variable Cost per Student Class Size of 35

4500

Cost Per Student

4000

3500
Average Cost Per Student
3000

Power (Average Cost Per


Student)

2500

2000

1500

1000

500

0
0

500

1000

1500
2000
Number of Students

2500

3000

Breakeven Point for Class Size of 40

4500000

4000000

$$$$$

3500000

Total costs

3000000

2500000

Total
Cost

2000000

Income
1500000

Breakeven
point
N= 946.72
2.63 years

1000000

500000

0
0

500

1000

1500
2000
Number of Students

2500

3000

Average and Variable Cost per Student Class Size of 40

4000

Cost Per Student

3500

3000
Average Cost Per Student
Power (Average Cost Per
Student)

2500

2000

1500

1000

500

0
0

500

1000

1500
2000
Number of Students

2500

3000

Average Cost per Student Comparative for Various Class Sizes

Cost per Student

6000

5000

4000

AC (25 per class)


AC (30 per class)
AC (35 per class)

3000

AC (40 per class)


2000

1000

0
0

500

1000

1500
2000
Number of Students

2500

3000

Breakeven Point Vs. Number of Students per Class

4.34

Number of Years

4.5
4

3.60

3.5

3.01
3

2.63

2.5
2
1.5
1
0.5
0
24

26

28

30

32
34
36
Number of students in class

38

40

42