North CountyCollege

Nutrition Education

Cost Basis & Efficiency Scenario

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Group 4 Members• Vernon Simpson• Zully Hilton• Yaa Donyina• Wendy Wilcot• Veronica Reyes• Yvonne Hanniford

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

IntroductionNutrition determines the course of our physical and mental well-being, and plays a vital role in our long-term health and resistance to disease.

The Nutrition Education Distance Education Course provides students with knowledge of dietary recommendations, nutrition policies, and discusses the value of dietary supplements.

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Objectives• Low cost educational opportunity for students• Interactive course design• Cost efficiency for greater profit and break-even point

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Course Specifics• 3 Semester-hour Credit Course• 12 weeks• 15 hours per week• Learning Management System Access• Video Presentations• WebEx Video Conference Sessions• In-depth Lectures• Student Support

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Costs• Course Overhead (Recurrent)• Development Costs – Overheads (Fixed)• Development & Production Costs (Fixed)• Maintenance Costs (Fixed)• Annual Presentation Costs (Variable)• Income/Revenue• Total Costs Versus Income

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Course Overhead• Manager – Wages equaling to $27,500.00 annually• Adjunct Instructor – Wages calculated at $650.00 per

credit hour, or $1950.00 per 3-credit class• Secretarial Support – Wages equaling to 22,800

annually

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Development Costs – Overhead (Fixed)

• Content developer – Wages equaling to $55,000 annually

• Secretarial support – Wages equaling to $22,800 annually

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Development & Production Costs (Print Development)

• Authoring of Study Guide – 8 units (50 pages ea) $1,500.00 per unit, totaling $12,000.00

• Course Reader Prep – 1 unit (200 pages) totaling $1,200.00

• Editing & Design – 11 units at $700.00 ea, totaling $7,700.00

• Copyright - 11 units at $1,600.00 ea, totaling $17,600.00

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Development & Production Costs (DVD Development)

• Content Development – 240 hours at $23.50 per hour, totaling $5,640.00

• Instructional Designer – 75 hours at $20.00 per hour, totaling $1,500.00

• Production – 120 hours at $15.00 per hour, totaling $1,800.00

• Copyright - 2 units at $1,250.00 per DVD, totaling $2,500.00

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Development & Production Costs (Assignment Development)

Assignment Development – 4 units at $600.00 ea, totaling $2,400.00

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Maintenance Costs (Fixed)

• Authoring of Study Guide – 2 units at $1,500.00 ea, totaling $3,000.00

• Editing & Design – 2 units at $1,000.00 ea, totaling $2,000.00

• Copyright – 2 units at $750.00 ea, totaling $1,500.00

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Annual Presentation Costs (Variable)

• Assignment Marking – 12 units at $16.67 ea, totaling $200.00

• Tutor – 100 units at $18.50 ea, totaling $74.00

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Annual Presentation Costs (Replication & Distribution)

• WebEx Licensing – 50 units at $16.56 ea, totaling $828.00• Study Guide Production – 8 units at $6.00 ea, totaling

$48.00• Reader Production – 1 unit totaling $ 10.00• DVD Production – 3 units at $17.60 ea, totaling $52.80• Packaging & Postage – 2 units at $15.20 ea, totaling

$30.40

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Income/Revenue

• Tuition & Fees - $1,399.50/Student• 150 Students/year = $209,925.00 annually

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

Total Costs Versus Income•Break-even point is Student #749

North CountyCollege

Nutrition Education

150300

450600

750900

10501200

13501500

0

500000

1000000

1500000

2000000

2500000

Break-even Point

F annualized (total)TC=F+VxNIncome

Cummulative Number of Students

North CountyCollege

Nutrition Education

Conclusion• Maintain low student & fees to attract students• Break even point is reached at…• High quality interactive course with use of WebEx and

Course Presentation Videos• LMS

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education

North CountyCollege

Nutrition Education