Question: Pricing of Education You are the director of continuing education programs for a state university. Courses for executives are especially popular, and you have developed an extensive menu of one-day and two-day courses that are presented in various locations throughout the state. The performance of these courses for the current fiscal year, excluding the final course, which is scheduled for the next Saturday, is as follows:

The costs of the courses include fees for instructors, rentals of classrooms, advertising, and any other items, such as travel, that can be easily and exclusively identified as being caused by a particular course. The general administrative expenses include your salary, your secretary's compensation, and related expenses, such as a lump-sum payment to the university's central offices as a share of university overhead. The enrollment for your final course of the year is 30 students, who have paid $200 each. Two days before the course is to begin, a city manager telephones your office. "Do you offer discounts to nonprofit institutions?" he asks. "If so, we'll send 10 managers. But our budget will not justify our spending more than $100 per person." The extra cost of including these 10 managers would entail lunches at $20 each and course materials at $30 each.

1. Prepare a tabulation of the performance for the full year including the final course. Assume that the costs of the final course for the 30 enrollees' instruction, travel, advertising, rental of hotel classroom, lunches, and course materials would be $3,000. Show a tabulation in four columns: before final course, final course with 30 registrants, effect of 10 more registrants, and grand totals.

2. What major considerations would probably influence the pricing policies for these courses? For setting regular university tuition in private universities?