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how would the contribution margin for a 12-credit-taking undergraduate student differ from the contribution margin of...

how would the contribution margin for a 12-credit-taking undergraduate student differ from the contribution margin of a 15-credit-taking undergraduate student? (Both are considered to be full-time, and pay the university the same price.)

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Answer #1

We know, Contribution Margin =

Since the university fee is same (no matter how many credits you take), revenue is same for both the students.
The variable cost for student with 15-credit-taking student would be higher (it is safe to assume that higher credits means higer number of courses undertaken).
Therefore, contribution margin would be lower for 15-credit-taking student as compared to that of 12-credit-taking student.

Please do rate me and mention doubts, if any, in the comments section.

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