Case Study-Turner Prep Co
Question 1: What is Jessica’s break even point?
Answer :
Fixed Costs
Professor Salaries for 1200 hours/year @ $75/hour
$90,000
Office Space @ $2000/month
$24,000
Utilities and Insurances @ $1000/month
$12,000
Printing @ $500/month
$6,000
Marketing @ $400/month
$4,800
Travel @ $200/month
$2,400
Total
$139,200
Variable Costs
Materials @ $600/student
$600.00
Selling Price per student
$1,100
Number of Students Jessica Needs to break even?
Break-Even Point = Total Fixed Costs/(Selling Price – Variable Costs)
139,200/(1,100-600)=278.4
Revenue = No. of Units sold*SP/unit
= 280* 1100 = $308000
Question 2 : How does Turner Test Prep overcome the competition from NTC?
Answer :
1. Jessica could think about using social media sites like Facebook and Twitter to tell more
people about her business. She could share any special deals they have and let customers
write reviews or give suggestions there.
2. To enhance her success rates, Jessica should dedicate resources to elevating passing
rates. For instance, prioritizing personalized teacher-student interactions could prove
beneficial, as studies have demonstrated that one-on-one tutoring significantly boosts test
performance. Moreover, exploring alternative study and test-taking techniques, such as the
potential memory-enhancing effects of chewing gum during exams, could be explored.
3. Spending more time and money on advertising might be a good idea. Putting some extra
money into a radio ad could bring in 10 or 20 new customers. And if they like the service,
they might tell their friends, which means even more customers later on.
4. Jessica could try to save money by finding a cheaper place for her business. This would help
her lower the prices for her customers and give her an edge over NTC.
Question 3 : How can Jessica achieve greater market share?
Answer 3 :
1. Diversify Marketing Channels: Explore a variety of marketing channels beyond just Bay area
business schools. This could include online advertising, social media marketing,
partnerships with local universities, and attending relevant industry events or fairs.
2. Online Presence: Develop a professional website that provides comprehensive information
about the program, instructors, success stories, and the unique benefits of Turner Test Prep.
An informative and user-friendly website can attract and engage potential students.
3. Content Marketing: Create valuable content related to CPA exam preparation, study tips,
exam structure, and accounting concepts. Sharing such content through blog posts, videos,
or webinars can position Turner Test Prep as an authority in CPA exam preparation and
attract organic traffic to the website.
4. Testimonials and Success Stories: Highlight success stories of past students who have
benefited from Turner Test Prep's program. Positive testimonials and case studies can build
credibility and showcase the effectiveness of the program.
5. Targeted Advertising: Use targeted online advertising to reach potential CPA exam
candidates. Platforms like Google Ads and social media platforms allow you to reach a
specific audience based on demographics, interests, and online behavior.
6. Free Workshops or Webinars: Organize free workshops or webinars that provide valuable
insights into CPA exam preparation strategies. This can attract prospective students and
showcase the expertise of Turner Test Prep instructors.
7. Continuous Improvement: Regularly assess and enhance the curriculum based on student
feedback and changes in exam content. Demonstrating a commitment to providing the most
up-to-date and effective preparation can attract students seeking quality education.