SG1 Consultants: Bankole, K.; Callahan, T.; Haggerty, S.; Kemp, P.

OMDE 606
December 2, 2012
1 A ONE3 OFF DEVELOPMENT AND PRODUCTION COSTS
Assignment
2 COURSE OVERHEADS
Type of unit
3 Management
per annual salary
4 Secretarial support
per annual salary
5 Software
Type of unit
6 Authoring software
Per software
7 Copyright software
Per software
8 Printed Material
Type of unit
9 Authoring software manual
Per manual (5pages)
10 Editing and design of software manual
Per manual (5pages)
11 Copyright software manual
Per manual (5pages)
12 CD
Type of unit
13 Production
Per CD
14 Assignment
Type of unit
15 Authoring assignment
Per assignment
19 Total fixed costs of development
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

B Maintenance (Software)
Authoring
Editing and design of software manual
Production CD

Type of unit
Per software
Per manual (5pages)
Per CD

Total fixed costs of maintenance

Total fixed costs
C ANNUAL PRESENTATION COSTS (all per student)
Student Support
Marking of assignment
Tutor pay
Tutor expenses
Replication and Distribution
Production manual
Production CD
Packaging and postage
Total variable cost per student

Type of unit
Per assignment
Per group of 25
Per group of 25
Type of unit
Per manual (5pages)
Per CD
Per mailing

Fee

Per student

No of units
0.525
0.450
No of units
1350
1
No of units
1
1
1
No of units
1
No of units
3

Rate per unit

No of persons
72000
1
24600
1
Rate per unit
60
500
Rate per unit
1000
1000
250
Rate per unit
5000
Rate per unit
0

No of units Rate per unit

700
60
1
1000
1
5000

No of units

1
1
1

Rate per unit

95
200
50
Rate per unit
10
12
10

750

3
8
8
No of units

D INCOME (per student per credit)

Costs ($$)
37800.000
11070.000
Costs ($$)
81000.000
500.000
Costs ($$)
1000.000
1000.000
250.000
5000.000
Cost ($$)
0.000
137620.000
Cost ($$)
42000.000
1000.000
5000.000
48000.000
185620.000
Cost/student ($$)
285.000
8.000
2.000
10.000
12.000
10.000
327.000
Income per student
750.000

No of students
Accumulated
Cash flow
FD depreciated (6 years)
FM depreciated (2 years)
F depreciated
FD annualized (6 years at 7.5%)
FM annualized (2 years at 7.5%)
F annualized/per year
F annualized (total)
Aggregate unit costs
TC=F+VxN
AC=F/N+V
Income per student
Income
Profit
Break even point

Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
TOTAL
200
200
200
200
200
200
200
400
600
800
1000
1200
137620
48000
29319
48000
229380
327.00

750

22937
24000
29319
26733

22937

22937

22937

22937

22937
29319

22937
29319

22937
29319

22937
29319

29319
229380
327
294780
1474
750
150000
-144780
542

29319
229380
327
360180
900
750
300000
-60180

29319
229380
327
425580
709
750
450000
24420

29319
229380
327
490980
614
750
600000
109020

22937
24000
46937
29319
26733
56052
229380
327
556380
556
750
750000
193620

22937
24000
46937
29319
26733
56052
229380
327
621780
518
750
900000
278220

137620
48000
185620
175914
53466
229380

Average cost

1600
1400
1200

$$

1000
800
600
400
200
0
200

400

600

800

1000

Number of students

Aggregate unit costs

AC=F/N+V

1200

200
0
200

400

600

800

1000

Number of students

Aggregate unit costs

AC=F/N+V

1200

Cost & Income

1000000
900000
800000
700000

$$

600000

F annualized
(total)
Income
TC=F+VxN

Break even pt 542

500000
400000
300000
200000
100000
0
200

400

600

800

Number of students

1000

1200

400000
300000
200000
100000
0
200

400

600

800

Number of students

1000

1200

F annualized
(total)
Income
TC=F+VxN

Year 1
No of students
Accumulated
F annualized (total)
Aggregate unit costs
TC=F+VxN
AC=F/N+V
Income per student
Income
Profit

229380
327.00

750

200
200
229380
327.00
294780
1474
750
150000
-144780

Year 2
200
400
229380
327.00
360180
900
750
300000
-60180

Year 3
200
600
229380
327.00
425580
709
750
450000
24420

Year 4
200
800
229380
327.00
490980
614
750
600000
109020

Year 5
200
1000
229380
327.00
556380
556
750
750000
193620

Year 6
200
1200
229380
327.00
621780
518
750
900000
278220