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Nobody State University: Total Revenue Increase Essay

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Nobody State University: Total Revenue Increase
Evangelina Mwangi
January 27, 2014
Instructor: Sean Bedard-Parker

My company, Somebody’s Money Revenue Service, sent me to evaluate and assess the risks of raising or lowering tuition cost with enrollment in order to develop an increase in total revenue for the Nobody State University. Student enrollment is at an all-time low for the university and needs encouragement to increase. With nearby competition from bigger and shorter term schools such as Everybody University and Smart Tech USA, a solution which can compete for student enrollment through tuition or incentive programs is needed. As a representative of Somebody’s Money Revenue Services, I am here to present the Nobody State University (NSU) with the solution to a lack of sufficient revenue from low student enrollment and tuition prices. In this presentation, I will explain the pros and cons of raising or lowering tuition versus student enrollment and how price elasticity will come into play with the tuition variable, as well as inform how I might approach the situation from the position of President of the university.
Proposed: Pros and Cons
NSU should raise tuition in order increase total revenue from student enrollment. The total amount tuition per student should be raised is the biggest factor in the revenue issue because, if the amount is not raised enough but student enrollment were to drop due to higher tuition, total revenue will fall. The same can be said for raising the tuition to high because tuition will likely drop faster as the price rises because the price elasticity for the university will not withstand the difference in terms of the drop in enrollment. However, price cannot stand where it currently is with enrollment so low. Should tuition remain constant, enrollment would likely also remain constant with slight raising and lowering depending on the nearby competition for educating students.
Currently, the best choice of...

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