Question

Break-even analysis is an important tool for managing any entity (not just businesses), including colleges and universities. Think about all the activities that occur on a college campus.

Required - Provide your answers to the following questions:

1. Identify three areas where break-even analysis might be used at Polk State College.

2. For each area, identify the revenues, variable costs, and fixed cost

Answer 1

1. Areas of college where break-even analysis is used in Polk State College are-

1. Enrollment.

2.  Canteen.

3.  Parking.

2. identification of the revenues, variable costs, and fixed cost-

Area	Revenue	Variable costs	Fixed costs
Enrollment	Fee from students	Repairs of furniture, use of water, and utilities.	Depreciation on college building, salary to college staff.
Canteen	Contract fee	Water and utilities.	Salary of clerical staff, Depreciation on canteen building.
Parking	Contract fee or parking fee.	Stationery, token expenses.	Depreciation on shading area, the salary of clerical staff.

Answer 2

1. Areas of college where break-even analysis is used in Polk State College are-

1. Enrollment.

2. Canteen.

3. Parking.

2. identificaion of the revenues, variable costs, and fixed cost-

Area	Revenue	Variable costs	Fixed costs
Enrollment	Fee from students	Repairs of furniture, use of water and utilities.	Depreciation on college building, salary to college staff.
Canteen	Contract fee	Water and utilities.	Salary of clerical staff, Depreciation on canteen building.
Parking	Contract fee or parking fee.	Stationery, token expenses.	Depreciation on shading area, salary of clerical staff.

Please mention your doubts in comment box, if you have.

Thanks & all the best......