Question

Kenton and Denton Universities offer executive training courses to corporate clients. Kenton pays its instructors $6,279 per course taught. Denton pays its instructors $299 per student enrolled in the class. Both universities charge executives a $344 tuition fee per course attended.

Required

1. Prepare income statements for Kenton and Denton, assuming that 21 students attend a course.

2. 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 40 students in its course.

3. 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 40 students in its course.

5. Prepare income statements for Kenton and Denton Universities, assuming that 14 students attend a course, and assuming that both universities charge executives a $344 tuition fee per course attended.
   Required ARequired B Required C Required E Prepare income statements for Kenton and Denton, assuming that 21 students attend a course. University Tuition revenue Total cost of instruction Net income (loss) Kenton Denton
   

Answer 1

Req A:
University				Kenton	Denton
Tution revenue (21 students @ 344)				7224	7224
Total cost of Instruction				6279	6279	(299*21)
Net Income (Loss)				945	945
Req B:
University				Kenton
Tution revenue (40 students @ 224)				8960
Total cost of Instruction				6279
Net Income (Loss)				2681
Req c:
University				Kenton
Tution revenue (40 students @ 224)				8960
Total cost of Instruction (299@ 40)				11960
Net Income (Loss)				-3000
Req e:
University				Kenton	Denton
Tution revenue (14 students @ 344)				4816	4816
Total cost of Instruction				6279	4186	(299*14)
Net Income (Loss)				-1463	630