Turner Test Prep Co. free essay sample

1. Assuming the fixed costs are borne by the Turner Test Prep Company on an annual basis regardless of the fact that CPA exam preparatory sessions are held only two times a year, the detailed costs expenses can be categorized into fixed and variable costs as follows: For the break even analysis, the business operation should generate just enough revenue to cover the operating expenses (without any loss or profits). The case states $1,100 per student as the fee schedule. In this case, breakeven point can be expressed as: Fixed Costs + Variable Costs = Revenue. Thus, 139200 + 600X = 1100X Solving for X, X = 139200/500 - 278. students annually or 140 students/session for biannual session schedule. So, Jessica Turner’s breakeven point considering $1,100 in fees per student is at least 140 students/session or 280 students annually to cover for the business expenses without making any profit or incurring a loss. 2. Turner test prep’s competitive advantage lies in offering the following services: †¢Live classroom sessions along with audiotapes of the lectures for later review †¢One-on-one feedback sessions with Jessica Turner on a bi-weekly basis to track progress The result of these services provided a 100%, 70% and 80% pass rate for the last three sessions. We will write a custom essay sample on Turner Test Prep Co. or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page NTC program boasted a 75% pass rate. Turner test prep company should continue with the services mentioned above. The focus going forward should be to improve marketing and promote the higher passing rate. NTC has been around for a longer time and unless Turner Test Prep Company advertises its strong unique points, it would be difficult to sway customers away from NTC. 3. To achieve greater market share, Jessica Turner needs to improve the quality of the services considering customer’s profile and possibly expanding the geographical market to include additional areas in addition to the bay area. MARKETING EFFORTS EXPANSION: Higher passing rate should be a stronger ‘sell’ point. A survey system can be established to collect the feedback from the past students and gather additional information on previous attempts at the CPA exam. This would help to get a better understanding of the CPA exam passing rate for past students. Testimonials from these surveys can be also be used to market the company better. A reward system based on referrals from current and past students would help in promoting the Turner Testing Prep Company better. Knowing the break-even point and the competitive fees that can be charged to the students, Jessica can now plan on the profits and the number of students required to get there. This would probably necessitate expanding the business to other areas as well in addition to capturing students from the competition. †¢SERVICES IMPROVEMENT: As described in the case, Jessica was already thinking about offering some flexibility in the comprehensive program. Tailoring the program offerings to the customer’s requirements would enhance the students’ performance at the CPA exam.