State University Is Preparing Its Master Budget for the Upcoming

question 108

Essay

State University is preparing its master budget for the upcoming academic year (an academic year consists of two semesters). Currently, 12,000 students are enrolled on campus; however, the admissions office is forecasting a 5% 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:
· State is planning to award 150 tuition-free scholarships.
· The average class has 30 students, and the typical student takes 15 credit hours each semester.
· Each class is three credit hours.
· Each faculty member teaches five classes during the academic year.
Required:
A. Compute the budgeted tuition revenue for the upcoming academic year.
B. Determine the number of faculty members needed to cover classes.
C. In preparing the university's master budget, should the administration begin with a forecast of students or a forecast of faculty members? Briefly explain.

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Definitions:

Per Capita Energy

The average amount of energy consumption per person in a specific population or area.

Economically Efficient

A situation in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Single Energy Source

Reliance on one type of energy for power or fuel, such as oil, natural gas, or solar power.

U.S. Electricity

Refers to the production, distribution, and consumption patterns of electricity within the United States, characterized by regional variations and evolving technologies.