Western State University (WSU) is preparing its master budget for the
upcoming academic year. Currently, 15,000 students are enrolled on campus;
however, the admissions office is forecasting a 5 percent growth in the student
body despite a tuition hike to $90 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 170 tuition-free scholarships. The average class has 25 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.
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?