Provincial University Is Organized into Four Colleges with the Following

question 153

Essay

Provincial University is organized into four colleges with the following characteristics:
Business Engineering Science Humanities
Number of majors 5,000 4,500 4,800 1,200
Number of non-majors taking classes 1,000 500 2,400 3,600
Revenue from student fees $600,000 $500,000 $720,000 $480,000
Revenue from external grants $200,000 $1,500,000 $800,000 $120,000
Variable cost per student $35.00 $65.00 $80.00 $25.00
Fixed cost per student (based on total students)$35.00 $55.00 $25.00 $10.00
a)List three items that would likely be included in the category of variable costs per student from the perspective of each college.
b)List two items that would likely be included as fixed costs per student from the perspective of each college.
c)Calculate the contribution margin per student from the perspective of each college and then from the perspective of the university as a whole.
d)Calculate the total profit from the perspective of each college and then for the university as a whole.
e)Based on financial considerations alone, identify the college that would most likely be dropped from the university during a budget crisis. Then identify the candidate that would least likely be dropped.
f)List three uncertainties about the quantitative analyses you performed in part (e).
g)List three qualitative issues that should be considered in making a decision to drop one of the colleges.

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Definitions:

Breech

A fetal position where the baby is set to be born buttocks or feet first instead of the normal head-first position.

Transverse Lie

A fetal position in which the baby lies horizontally in the uterus, making vaginal delivery difficult or impossible without medical intervention.

Breech Presentation

A fetal position for childbirth where the baby is positioned to deliver buttocks or feet first.

External Cephalic Version

A medical procedure used late in pregnancy to turn a fetus from a breech position into a head-down (vertex) position before labor begins.