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

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

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

4. 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.

5. 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.

6. 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

7. 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

8. 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

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

10. Cost Analysis Spreadsheet and Calculation

11. TOTAL COSTS GRAPH

12. AVERAGE COST GRAPH

13. BREAK EVEN POINT (BEP) GRAPH

14. TOTAL COST GRAPH

15. 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

16. 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 Laurillard, D. (2011). It is viable? Modeling the benefits and cost of converting modules from conventional to open mode [Elluminate Session]. Retrieved from M.62CF7E24B9BA4378F853D753CA31.ver&sid=

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

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