An analysis of the university cost structure

Assignment Help Accounting Basics

Reference no: EM13503126

Atlantic University has 8 schools 350 faculty members and 20,000 students. An analysis of the university's cost structure yielded the following annual cost estimates.
The university sustaining cost levels is $20,000,000, which includes basic building costs, admin salaries like president and admissions offices. Committed costs at the university level increase in the long run, by $20,000,000 for each new school added and by $1000 for each additional student enrolled.
The school of business is a school in Atlantic University. The school sustaining cost level is $5,000,000. The area sustaining cost level is $50,000. Committed costs in the School of Business increase, in the long run, by $200,000 for each faculty member added and by $500 for each unit of student capacity added. Planner at the university estimate that the total flexible costs per student amount to $600 (all the costs above are annual costs).
Each faculty member teaches 5 courses and each student takes 9 courses per year.
The accounting area in the school of business has 30 faculty members and is offering 150 courses with, on average 60 students in each course. Only accounting students take the course.
Required:
1. What is the total annual cost per accounting student?
2. What is the total annual cost of the accounting program?
3. The dean is considering the shift of faculty workload. The shift will result in each faculty member teaching 4 course per year. The number of students course enrollments will be unchanged. How will this change affect the cost per student? How will it affect the cost of the accounting program?

Reference no: EM13503126

Questions Cloud

Evaluate companys overall wacc : Determine the companys Weighted Average Cost of Capital and determine the NPV of the project - indicate which depreciation method you have used, and explain why you chose this method.

Understand about the functions of the brain : A cocaine user in confronted by his former college roommate, who is shocked to observe some significant changes in his old friend. he is no sullen and suspicious instead of outgoing and curious.

Compute the original speed of the mess kit : A 10.0 kg mess kit sliding on a frictionless surface explodes into two 5 kg parts, one moving at 4.5 m/s, due north, What was the original speed of the mess kit

Explain what volumes of 0.53 m hno2 and 0.59 m nano2 : What volumes of 0.53 M HNO2 and 0.59 M NaNO2 must be mixed to prepare 1.00 L of a solution buffered at pH = 3.41

An analysis of the university cost structure : Atlantic University has 8 schools 350 faculty members and 20,000 students. An analysis of the university's cost structure yielded the following annual cost estimates.

At what angle below horizontal should you throw the spear : One of the contests at the school carnival is to throw a spear at an underwater target lying flat on the bottom of a pool. The water is 1.2 m deep. At what angle below horizontal should you throw the spear in order to hit the target

Explain sample of an ionic compound naa : A 13.00 g sample of an ionic compound NaA, where A- is the anion of a weak acid, was dissolved in enough water to make 100.0 mL of solution and was then titrated with 0.100 M HCl.

Estimate the film thickness : A thin film with index of refraction n = 1.48 is placed in one arm of a Michelson interferometer, perpendicular to the optical path. what is the film thickness

The machine using the straight-line method : Recorded depreciation on the machine using the straight-line method

User Account

All Pages