GetSmartz University, which has the capacity to accommodate 4500 students is trying to decide whether...
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Accounting
GetSmartz University, which has the capacity to accommodate 4500 students is trying to decide whether to allow 100 more students into the university. Tuition for each student is $5,000 per year. You are the university's controller, and you have determined the following schedule of costs to educate students: Number of Students Total Costs 4,000 $30,000,000 4,100 30,300,000 4,200 30,600,000 4,300 30,900,000 The current enrollment is 4,200 students. The president of the university has calculated the cost per student in the following manner: $30,600,000/4,200 students = $7,286 per student. The president has asked you why the university should accept more students if the tuition is only $5,000 per student. Q25. What can be said about the proposed decision? O The university will make a loss of about $228,600 if it accepts another 100 students O The university will make a profit of about $228,600 if it accepts another 100 students O The university will make a loss of about $200,000 if it accepts another 100 students The university will make a profit of about $200,000 if it accepts another 100 students
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