Calculate total profit from the perspective of each college

Assignment Help Finance Basics

Reference no: EM132082477

Question: University AAA is organized into four colleges with the following characteristics:

Business Engineering Science Humanities

Number of majors 10,000 9,000 9,600 2,400

Number of non-majors taking classes 2,000 1000 4,800 7,200

Revenue from student fees $1,200,000 $1,000,000 $1,440,000 $960,000

Revenue from external grants $400,000 $3,000,000 $1,600,000 $240,000

Variable cost per student $35.00 $65.00 $80.00 $25.00

Fixed cost per student (based on total students) $35.00 $65.00 $25.00 $10.00

A. List three items that would likely be included in the category of variable costs per student from the perspective of each college.

B. List two items that would likely be included as fixed costs per student from the perspective of each college.

C. Calculate the contribution margin per student from the perspective of each college and then from the perspective of the university as a whole.

D. Calculate the total profit from the perspective of each college and then for the university as a whole.

E. Based on financial considerations alone, identify the college that would be most likely to be dropped from the university during a budget crisis. Then identify the candidate that would least likely be dropped.

Reference no: EM132082477

Questions Cloud

Connective tissue between our two systems : Blood is the "connective" tissue between our two systems this week. Discuss the function of blood in both the cardiovascular and lymphatic systems.

What was the a of redeemed by customers during the year : Unearned Revenue, which represents the company's obligation to gift cards previously issued to customers, beginning of the year and s10.500.

Chemical analysis of the synthetic standard urine : Compare the results of chemical analysis of the synthetic standard urine and synthetic abnormal urine.

What is the most interesting water properties : What is the most interesting water properties? Explain how hydrogen bonding relates to that particular property.

Calculate total profit from the perspective of each college : Calculate the total profit from the perspective of each college and then for the university as a whole. Based on financial considerations alone.

What is the meaning of theory versus hypothesis such misuse : And what are the broader effects this continued misunderstanding has on public acceptance of scientific findings.

Prepare a depreciation schedule for six years : University Car Wash built a deluxe car wash across the street from campus. The new machines cost $219,000 including installation.

Gaining informed consent when conducting primary research : You should be familiar with the process of working with human subjects and the importance of gaining informed consent when conducting primary research.

Determine the structure of a professional policy analysis : Pay specific attention to the five essential components of a policy analysis: problem statement, background, landscape, options analysis, and recommendation.

User Account

All Pages