Peter Appert, Piper Jaffray
Got it. Thanks, Greg.
Greg Cappelli, Chief Executive Officer, Apollo Education Group, Inc.
Thank you.
Operator
Your next question comes from the line of Paul Ginocchio with Deutsche Bank. Your line is open.
Paul Ginocchio, Deutsche Bank
Thanks for taking my question. Brian, can you just talk about revenue per student, how much of that is the 8.5% down? How much of that is because of the internal systems issues, and also maybe talk about. It looks like some of your cost line items are up Q-on-Q, how much additional costs are going in to fix the system so we could maybe see the underlying cost trends as well? Thank you.
Brian Swartz, SVP and Chief Financial Officer, Apollo Education Group, Inc.
Yeah. To answer the first part of that question, Paul, a significant portion of the 8.5% reduction is related to the persistency issues and the retention issues in the classrooms, so that is a significant portion of the 8.5% and might even be a majority on the RPS. Your second question in terms of the cost to address and rectify these issues, we have been putting some capital in there, if not significant or overly material. It is really a reprioritization of enhancements. We also have put in a handful of $1 million kind of thing, not a significant number in the context of the financials to accelerate as many of the fix as we can.
Paul Ginocchio, Deutsche Bank
Okay. I look at theG&A and had been sort of trending down in the last quarter, recently spiked back up, and in your instructional cost have started going back up, so there is not a lot in there for that fix?
Brian Swartz, SVP and Chief Financial Officer, Apollo Education Group, Inc.
In the instructional cost that’s where the fix would be.
Paul Ginocchio, Deutsche Bank
Okay.
Brian Swartz, SVP and Chief Financial Officer, Apollo Education Group, Inc.
Again, there is not a significant amount of the incremental dollars solely related to a fix. In general, with respect to those specific line items overall, I would expect instructional to be down in line with the variable cost over the course of this year. G&A should be down as we progress through the year. It is down on a year-over-year basis sequentially. There is up a little bit, some of that just timing in terms of when certain expense is there.
Paul Ginocchio, Deutsche Bank
Great.
Greg Capelli, Chief Executive Officer, Apollo Education Group, Inc.
Paul, there is investments going into the new college operating models as well that are important to the future.
Paul Ginocchio, Deutsche Bank
Okay, great. Just finally on marketing, you’re still down year-on-year, but not as significantly as maybe last year. It is still going to be down year-on-year, is this first quarter a good number to look at for the year?
Brian Swartz, SVP and Chief Financial Officer, Apollo Education Group, Inc.
Yeah. We will be down over the course of the year. You have to remember a lot of the…this isn’t solely University of Phoenix anymore, some of it is a lot of our international operations. It includes marketing to support. I mean, they are in a growth mode, virtually all of those businesses. There is a little bit. At the University of Phoenix, we do expect it to be down. We are being very pretty real. We also are looking for opportunities to the extent it makes sense and the returns are successful to put additional money to work as well in the marketing and advertising area.
Overall the dollars will be down. I do not want to commit that it will be down in line with where they were Q1 year-over-year because we do look at that periodically and make decisions that are in the best interest in the longterm.
