Efficient use of television for teaching cannot be achieved without meaningful cost comparisons with conventional classroom methods. Considerable effort has been spent at the University of Michigan in developing a unit cost basis for televised filmed lectures to include not only salaries, but administrative costs, supplies, amortization of equipment, and occupancy costs for representative courses. All related costs are listed on a per hour basis and compared with corresponding costs for traditional classroom methods. Four conclusions result--(1) the major expense associated with televised instruction is current instructional staffing costs, (2) more efficient use can be made of TV instructional methods only if there is a reduction in the current personnel, especially senior faculty members, (3) efficiency is gained when production costs remain fixed and student enrollment increases, and (4) certain larger courses should seek and maintain a level at which expenditures are balanced by student enrollment. Tables are included. (KK)