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Question: 22 the college of business at tech is planning to...

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22. The College of Business at Tech is planning to begin an online MBA program. The initial start-up cost for computing equipment, facilities, course development, and staff recruitment and develop- ment is $350.000. The college plans to charge tuition of $18,000 per student per year. However the university administration will charge the college S12.000 per student for the first i00 students enrolled each year for administrative costs and its share of the tuition payments. a. How many students does the college need to enroll in the first year to break even? b. If the college can enroll 75 students the first year, how much prot will it make? c. The college believes it can increase tuition to $24,000, but doing so would reduce enrollment to 35. Should the college consider doing this?
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