Calculating

The first group of costs we must consider are those encountered on a percourse basis. These are the costs for each course you create and offer, regardless of how many times you offer it or how many learners take the course. For our example, we will consider an 8hour classroom course. We will assume that the WBT version is the same length.
First, we multiply the course length by the number of hours of course development required for each hour of the finished course. We will assume the classroom version requires 50 personhours per course hour. For the WBT version we will assume a much higher development time rate: 200 hours of development for each course hour. This discrepancy reflects the newness of WBT, the requirement for computer tools to do development, the lack of validated templates and models, and the inexperience of developers. Then, we multiply the development hours by the development cost rate, that is, the cost for each hour of development. For this example, we will assume a cost rate of $50 per hour for developing classroom training and $100 per hour for developing Webbased training. The difference represents the difficulty of developing multimedia and the relative scarcity of knowledgeable WBT developers. Multiplying up all these factors yields a percourse cost of $20,000 for the classroom version and $160,000 for the WBT version. Shifting to WBT would require the upfront investment of an additional $140,000 per 8hour course. This calculation is obviously quite simple and we need to add some caveats about it:
