Question

Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 10,500 students are enrolled on campus; however, the admissions office is forecasting a 4 percent growth in the student body despite a tuition hike to $70 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 150 tuition-free scholarships. - The average class has 20 students, and the typical student takes 10 credit hours each semester. Each class is two 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? Complete this question by entering your answers in the tabs below. Prepare a tuition revenue budget for the upcoming academic year. Determine the number of faculty members needed to cover classes. Assume there is a shortage of full-time faculty members. (Select "Yes" if the statement is an action that WSU might ta to accommodate the growing student body, and "No" if it is not.) 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

The tuition revenue budget for WSU, considering a 4% increase in enrollment and new tuition fees, is $15,078,000. WSU will need 546 faculty members to cover all classes. Faculty are a key driver in budgeting, influencing resources and infrastructure planning for the university.

Step-by-step explanation:

To prepare a tuition revenue budget for the upcoming academic year at Western State University (WSU), we first calculate the expected number of students. With a 4 percent growth rate applied to the current 10,500 students, the projected enrollment is 10,920 students. After accounting for the 150 tuition-free scholarships, we have 10,770 paying students. Since the typical student takes 10 credit hours each semester and tuition is $70 per credit hour, the total tuition revenue is 10,770 students × 20 credit hours per year × $70 = $15,078,000.

To determine the number of faculty members needed to cover classes, we divide the number of classes needed by the number of classes each faculty member teaches. Each of the 10,920 students takes 10 credit hours per semester or 5 classes per year, resulting in a need for 54,600 class spots (10,920 students × 5 classes). Since each class has 20 students, WSU needs 2,730 classes (54,600 class spots − 20 students per class). Each faculty member teaches 5 classes per year, so WSU will need 546 faculty members (2,730 classes ÷ 5 classes per faculty).

In case of a faculty shortage, WSU might increase class sizes, hire part-time or adjunct faculty, offer overtime to current faculty, use graduate students as teaching assistants, or increase the reliance on online courses. These actions could accommodate the growing student body.

Faculty members are indeed a key driver in preparing budgets for other areas of operations, including the library, grounds, dormitories, and maintenance. Knowing the number of faculty allows the university to plan for office space, class sizes, and support staff, contributing to the overall educational experience.