Cost-Income Equilibrium for Electronically Delivered Instruction

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, 116 decrease the start-up costs, decrease the marginal cost, improve market share, change mode of delivery, and reduce fixed costs. [Article copies available for a fee from The Haworth Document Delivery Service: 1-800-HAWORTH. E-mail address: < gerinfo@haworthpressinc.com > Website: < https://www.w3.org/1999/xlink" xlink:href=" https://www.HaworthPress.com "> https://www.HaworthPress.com > © 2002 by The Haworth Press, Inc. All rights reserved.]