collins college has annual fixed operating costs of $20,600,000 and variable operating costs of $2,400 per student. tuition is $12,000 per student for the coming academic year, with a projected enrollment of 2,000 students. expected revenues from endowments and federal and state grants total $400,000. how much must the college obtain from other sources?

Operating costs are described as the expenses that are borne by a business, and such costs arise from running a business on a day-to-day basis.

Given that,

Projected enrollment = 2000

Fixed operating costs = $20,600,000

Variable operating costs = $2,400/student

Hence, total variable costs = $2,400 x 2000 = $4,800,000

Tuition per student = $12,000 in an academic year.

Total tuition earned by Collins college = $12,000 x 2000 = $24,000,000

Expected revenue from endowments, and federal and state grant = $400,000

Total operating costs = $20,600,000 + $4,800,000 = $25,400,000

Total revenue = $24,000,000 + $400,000 = $24,400,000

Total deficit = total operating costs - total revenue = $25,400,000 - $24,400,000 = $1,000,000

The amount of $1,000,000 should be obtained from other sources.

It can be concluded that Collins college must obtain $1,000,000 from other sources.

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