Question

Kenton and Denton Universities offer executive training courses to corporate clients. Kenton pays its instructors $6.237 per course taught. Denton pays its instructors $297 per student enrolled in the class. Both universities charge executives a $344 tuition fee per course attended. Required a. Prepare income statements for Kenton and Denton, assuming that 21 students attend a course. b. Kenton University embarks on a strategy to entice students from Denton University by lowering its tuition to $224 per course. Prepare an income statement for Kenton assuming that the university is successful and enrolls 36 students in its course. c. Denton University embarks on a strategy to entice students from Kenton University by lowering its tuition to $224 per course. Prepare an income statement for Denton, assuming that the university is successful and enrolls 36 students in its course. e. Prepare income statements for Kenton and Denton Universities, assuming that 15 students attend a course, and assuming that both universities charge executives a $344 tuition fee per course attended. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required E Prepare income statements for Kenton and Denton, assuming that 21 students attend a course. Kenton Denton University Tuition revenue Total cost of instruction Net income (loss) S 0S 0

Answer 1

Requirement A:

University	Kenton	Denton
Tuition revenue [21 students x $344]	$7,224	$7,224
Total cost of instruction	($6,237)
[21 students x 297]		($6,237)
Net income (loss)	$987	$987

Requirement B:

University	Kenton
Tuition revenue [36 students x $224]	$8,064
Total cost of instruction	($6,237)
Net income(Loss)	$1,827

Requirement C:

University	Denton
Tuition revenue [36 students x $224]	$8,064
Total cost of instruction [36 students x 297]	($10,692)
Net income(Loss)	($2,628)

Requirement E:

University	Kenton	Denton
Tuition revenue [15 students x $344]	$5,160	$5,160
Total cost of instruction	($6,237)
[15 students x 297]		($4,455)
Net income (loss)	($1,077)	$705