Question

Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 12,000 students are enrolled on campus; however, the admissions office is forecasting a 7 percent growth in the student body despite a tuition hike to $80 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 160 tuition-free scholarships.
• The average class has 20 students, and the typical student takes 20 credit hours each semester. Each class is four 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.

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

Answer 1

3. The University can approach these five actions

a. Hiring of Part Time professors

b. Increasing classes taken by Current professors

c. Adding Summer session to course curriculum

d. increase of class size

e. reduction of number of section to be offered

4. No faculty members are not key drivers of preparing budgets. Because main purpose of this business is to generate fees by teaching student in a class. Hence Student and tuition are the main Sources of Revenue generation