Business Proposal

ECO/561
July 18, 2011
Joe Krupka

Ross Business Institute Business Proposal
This business proposal will introduce a new educational program to be offered at Ross Business Institute.   Ross Business Institute is a small vocational retraining school that currently offers Accounting and Computer Repair training programs.   This proposal will describe a new program teaching the skills necessary for a student to succeed as an Administrative Assistant in today‚Äôs work force.
Taking into consideration the state of the current economy and the number of displaced workers offering a new program will increase the student base and increase revenues of the school.   The demand in the market for affordable and concise materials is great and this proposal will address that demand.   This program will be one year in length and offered at a cost of $10,500, including all fees, courses, and books.   The courses will be offered during the same hours as the current programs, which means it will not require additional resources for electricity or location.   The only additional resources required would be an instructor.
This program has the ability to increase revenues as the costs to run this program will not be much more than the school is already paying out to run the current programs.   The program will generate total revenue of $10,500 per student and the cost per student will be $2,675, this brings the net profit per student to $7,875, thus creating an increase in revenues.   In order to achieve this increase, the program will be marketed and advertised to the high school students as well as displaced workers through the many programs offered at the unemployment offices.
Maximizing profits quantity is calculated by understanding marginal analysis or studying the incremental changes in profit.   The quantity is determined by analyzing the shift of the marginal profit from positive to negative.   The quantity level for this program will be at six students, each additional student...