Cost-Income Equilibrium for Electronically Delivered Instruction
Titel:
Cost-Income Equilibrium for Electronically Delivered Instruction
Auteur:
Taylor, Raymond G. Vasu, Ellen Storey Vasu, Michael Lee Steelman, Jane D.
Verschenen in:
Computers in the schools
Paginering:
Jaargang 19 (2003) nr. 3-4 pagina's 115-128
Jaar:
2003-01-17
Inhoud:
This article presents a basic cost-income model for electronically delivered instruction (EDI) (Jewett, 1999; Karelis, 1999). Systematic elaborations on the basic model are presented that explain the financial problems associated with EDI, and suggest strategies for making EDI financially viable. The basic model presented in the first figure includes dollars, enrollment, and hypothetical delivery systems and start-up costs. The second figure adds income and crossover points. The third figure adds the market share concept. The fourth figure simplifies the third. Seven solutions for moving the crossover to the left of the market share are presented and discussed: Increase income per enrollment, decrease the start-up costs, decrease the marginal cost, improve market share, change mode of delivery, and reduce fixed costs.