Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Capital University, a mid-size university located in a capital city has approximately 10,000 students studying in four departments
Capital University, a mid-size university located in a capital city has approximately 10,000 students studying in four departments. While the University’s goal is not to make a profit, it is also important that the University does not operate at a loss. The only source of revenue is tuition and government grants. The government gives the University $14,000 a year for each full-time student.
|
Faculty: |
Arts |
Science |
Engineering |
Business |
|
Number of Courses |
120 |
200 |
150 |
150 |
|
Number of Students |
4,800 |
2,000 |
600 |
2,700 |
Other Information:
- Each Course is only offered once each year
- Each student is enrolled in 10 classes per year
- Each faculty member is paid $120,000 per year and teaches 6 courses per year
- Total student support costs are $139,992,700 per year. These cost include student services and administration. Each student generally requires an equal amount of support.
- Building costs are $12,400,000 per year. Costs are equal for each class.
- Other costs $17,000,000 (Science labs $10million, Business trading room $2million, Engineering labs $5million).
REQUIRED
- The Dean has asked you to use this information to determine how much tuition should be charged assuming the same amount of tuition should be charged to each student and the University breaks even.
- Using Activity Based Costing, calculate how much tuition should be charged to students in each faculty.
Expert Solution
n this question
- not earn ??????profit and not earn loss means Break even point
- only source of revenue is as follow
- Govt grant in this question given $14000
- tution fees ? ( required calculate )
3. Clculation of cost incured in a year
IN A SUMMARRY WAY HOW SOLVE THIS QUESTION
BREAK EVEN POINT = REVENUE - VARIABLE COST -FIXED COST
IN THIS CONTEXT THIS QUESTION
COST INCURRED - TUTION FEES +TUTION FEES( REVENUE FROM STUDENT )
SOLUTION
1.
COST INCURRED
- Faculty member paid
total cources 120+200+150+150*120000/6 = 12,400,000
- Total student support cost = 139,992,700
- Building cost = 12,400,000
- Other cost = 17,000,000
TOTAL COST = 181,792,700
2. Revenue
total cources* no of student/10
120*4800+200*2000+150*600+150*2700 = 1471000
Total cost = 181,792,700
Govt grant = 14,000
that means revenue = 181792700-14000=181778700
per student cost of course = 181778700/1471000 = $1289.2106
per student cost of class = 181778700/1471000*10 = $128.92106
As per activity based costing
COST INCURRED
- Faculty member paid
total cources 120+200+150+150*120000/6 = 12,400,000 (divide in no of cource )
- Total student support cost = 139,992,700 (divide in no of cource )
- Building cost = 12,400,000 (divide in no of cource )
- Other cost = 17,000,000 (actully incurred)
|
Arts |
Science |
Engineering |
Business |
particular Arts science engineering business
Faculty member paid 2,400,000 4000000 3,000,000 3,000,000
Total student support cost 27,095361 45,158,935 33,869,202 33,869,202
Building cost 2,400,000 4000000 3,000,000 3,000,000
Other cost -- 10,000,000 5,000,000 2,000,000
total cost 31,895,361 63,158,935 44,869,202 41,869,202
as per this calculate faculty cost devide propotionately in 576000:400000:90000:405000 per cource per student cost
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
