Question

Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 16,500 students are enrolled on campus; however, the admissions office is forecasting a 8 percent growth in the student body despite a tuition hike to $85 per credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials:

• WSU is planning to award 200 tuition-free scholarships.
• The average class has 20 students, and the typical student takes 15 credit hours each semester. Each class is three credit hours.
• WSU’s faculty members are evaluated on the basis of teaching, research, and university and community service. Each faculty member teaches five classes during the academic year.

1.Prepare a tuition revenue budget for the upcoming academic year.

	Tuition revenue budget: Total student body Tuition-paying students Total credit hours Forecasted tuition revenue

2.Determine the number of faculty members needed to cover classes.

3. Assume there is a shortage of full-time faculty members. Select at least five actions that WSU might take to accommodate the growing student body by selecting an "X" next to the action.

	Hire part-time instructors Use graduate teaching assistants Increase the teaching load for each professor Reduce the number of courses offered. Increase class size and reduce the number of sections to be offered Have students take an Internet-based course offered by another university Shift courses to a summer session

4.You have been requested by the university’s administrative vice president (AVP) to construct budgets for other areas of operation (e.g., the library, grounds, dormitories, and maintenance). The AVP noted: “The most important resource of the university is its faculty. Now that you know the number of faculty needed, you can prepare the other budgets. Faculty members are indeed the key driver—without them we don’t operate.” Are faculty members a key driver in preparing budgets? Yes or No?

Answer 1

1.Statement for Tuition Revenue Budget as follows
Particular	Amount $
Total Student (16500X108%)	17820
Less: Tuition Fees Scholarship	-200
Revenue Generating Students	17620
Credit Hours per Year (15X3)	45
Total Credit Hours	792900
Tuition Rate per Hour	$85
Budgeted Tuition Revenue	$67,396,500
2.Computation of Number of Facility Members needed is as Follows
Particular	Amount-$
Total Student (16500X108%)	17820
Class per Student in a Year	10
(15Credit Hours/3 Credit Hours)X2 Semester
total Student Classes	178200
Student Per Class	20
Class to be taken (178200/20)	8910
Class taken per Professor	5
Number of Facility needed	1782
3) The Five Action are as follows
a) Hire Part Time Instructor
b) Increase the Teaching Load for each Teacher
C) Shift Course to a Summer Session
d) Increase class size and reduce the number of section to be offered
e) Have Student takes an internet based course offered by another university
4) Option is No, Because main purpose of this business is to generate fees by teaching and accomodating student in a class. Hence Student and tuition are the main Sources of Revenue generation