OMDE 606 Cost and Economics of Distance Education and E-Learning University of Maryland University College

Assignment 3-Collaborative Assignment Group Members John Kearney Bhai Sesay Kristin Trostel Tracy Wright

Scenario Background Project Description Project Expected Outcomes General Project Guidance Cost Guidance Cost Analysis Spreadsheets and Calculations Recommendations and Conclusions

Background The Open University of Maryland The Open University of Maryland (OUM) is the leading University of the state of Maryland and Nationally. 11 colleges More than 150 undergraduate, graduate, doctoral, professional and specialist degree programs.

Project Description OUM’s Director of Leadership and Social Change wants an introductory course designed and created by Mr. Thomas Hulsmann called LDR210, Leadership Theory and Practice: -Undergraduate Certificate in Leadership Studies -traditional on-campus course The group members will complete a cost analysis.

Project Expected Outcomes Classification of different cost items Calculations: -Recurrent Fixed Costs of course overheads, -Fixed Costs of Development and Fix Cost of Maintenance -Variable Cost per student -Depreciation rate on a basis over the lifetime

General Project Guidance 3-credit course 12 week/4 course a year/ max. 20 students per class Service learning hours= 144 Acquisition: Revise Syllabus and build discussion prompts Production- Two 1500 word essays and a group assignment

Cost Guidance Budget for 80 students Course manager salary $80,000 Curriculum Assistant $60,000 1 hour Technical Support rate $40 1- hour of academic time rated at $45

Cost Analysis Spreadsheet and Calculations Recurrent Fixed Development Fixed Maintenance Total Fixed Variable Costs Per Student Fees

Cost Analysis Spreadsheet and Calculation

TOTAL COSTS GRAPH

AVERAGE COST GRAPH

BREAK EVEN POINT (BEP) GRAPH

TOTAL COST GRAPH

Recommendations and Conclusions Course will exist for 7 years Total income for this course $4,704,000 with the cost of $538,726 Course materials includes: -pre-evaluation -academic pledge -information technology support -syllabus -discussion prompt -assignment creation Course is Profitable

References Hulsmann, T. (2000). The cost of opening learning: a handbook. Retrieved from OMDE 606 class readings. Hulsmann, T. (2004). Cost open and distance learning [URL]. Retrieved from http://www.c31.uni-Oldenburg.de/cde/COLproject/web-col/ Laurillard, D. (2011). It is viable? Modeling the benefits and cost of converting modules from conventional to open mode [Elluminate Session]. Retrieved from https://sas.elluminate.com/site/external/jwsdetect/playback.jnlp?psid=201 1-05-17.0559.M.62CF7E24B9BA4378F853D753CA31.ver&sid=2007016

References Rumble, G. (2007). The cost and economics of online distance education. Open Learning: The Journal of Open and Distance Learning, 22 (2), 167-176.

Backup Material Annualization Calculations: Fixed Costs of Development Fixed Costs of Maintenance