Question

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." Our faculty members a key driver in preparing budgets?

Answer 1

To prepare the tuition revenue budget for the upcoming academic year at Western State University (WSU), calculate the total tuition revenue based on the current number of students and the forecasted growth. Additionally, determine the number of faculty members needed to cover classes by dividing the total credit hours by the credit hours per faculty. Finally, identify actions WSU could take to accommodate the growing student body, such as building new classrooms and hiring more faculty members. Faculty members are considered a key driver in preparing budgets due to their role in delivering educational services.

Step-by-step explanation:

To prepare the tuition revenue budget for the upcoming academic year at Western State University (WSU), we need to consider the current number of students and the forecasted growth. Currently, there are 15,000 students enrolled and the admissions office is forecasting a 5 percent growth. Since each student takes 15 credit hours per semester, and each credit hour costs $90, we can calculate the total tuition revenue as follows:

Total Credit Hours = Number of Students * Credit Hours per Student = 15,000 * 15 = 225,000

Tuition Revenue = Total Credit Hours * Tuition Per Credit Hour = 225,000 * $90 = $20,250,000

Therefore, the tuition revenue budget for the upcoming academic year is $20,250,000.

2. Determining Number of Faculty Members Needed

To determine the number of faculty members needed to cover classes, we can divide the total credit hours by the number of credit hours taught by each faculty member:

Number of Faculty Members = Total Credit Hours / Credit Hours per Faculty = 225,000 / (5 * 3) = 15,000 / 15 = 1,000

Therefore, WSU would need 1,000 faculty members to cover the classes.

3. Actions to Accommodate Growing Student Body

• Building new classrooms or expanding existing ones
• Hiring additional full-time faculty members
• Increasing the number of part-time faculty members
• Offering more online courses
• Implementing double sessions or schedule changes to optimize class capacity

4. Faculty Members as Key Driver in Preparing Budgets

The administrative vice president (AVP) considers faculty members as a key driver because they play a crucial role in delivering educational services. Faculty members are responsible for teaching classes, conducting research, and contributing to the university and community. Their workload and number directly impact the budget of other areas of operation, such as the library, grounds, dormitories, and maintenance.

Answer 2

The student's question involves calculating tuition revenue growth based on enrollment and scholarships, determining faculty needs based on class sizes and instructor availability, and discussing strategies for managing a faculty shortage for the upcoming academic year at Western State University.

Step-by-step explanation:

The student is asking for assistance with creating a tuition revenue budget and determining the number of faculty members needed for Western State University (WSU) based on enrollment growth and class structure. We will calculate the tuition revenue by taking into account the projected increase in student enrollment and the scholarships awarded. To determine the number of faculty members needed, we'll use the average class size and the number of classes each faculty member teaches.

To prepare the tuition revenue budget, we first forecast the student enrollment for the upcoming academic year, consider the tuition fee increase, and account for the tuition-free scholarships. For the number of faculty members needed, we divide the total number of classes by the number of classes each faculty member can teach during the academic year.

Due to the shortage of full-time faculty members, WSU may consider actions such as hiring part-time or adjunct faculty, increasing class sizes, utilizing online teaching platforms, offering incentives for faculty to teach more classes, and prioritizing the hiring of new full-time faculty.

With the faculty being the key driver for operations, the budgets for other areas like the library, grounds, dormitories, and maintenance will likely be influenced by the number of faculty and students on campus. For example, more students would necessitate expanded library hours and increased grounds and maintenance support.