Reference no: EM13992210

Student tuition at Boehring University is ?$180 per semester credit hour. The state supplements school revenue by ?$70 per semester credit hour. Average class size for a typical 3-creditcourse is 60 students. Labor costs are ?$4,500 per? class, materials costs are ?$18 per student per? class, and overhead costs are $27,000per class. The multifactor productivity ratio currently is 1.38 and the labor productivity ratio is $200.89 per hour if the instructors work on an average of 14 hours per week for 16 weeks for each 3?-credit class of 60 students.

Coach Bjourn Toulouse led the Big Red Herrings to several disappointing football seasons. Only better recruiting will return the Big Red Herrings to winning form. Because of the current state of the? program, Boehring University fans are unlikely to support increases in the? $192 season ticket price. Improved recruitment will increase overhead costs to $34,000 per class section from the current ?$27,000 per class section. The? university's budget plan is to cover recruitment costs by increasing the average class size to 80 students. Labor costs will increase to?$6700 per 3?-credit course. Material costs will be about ?$30 per student for each 3?-credit course. Tuition will be ?$250 per semester? credit, which is supplemented by state support of ?$70 per semester credit.

a. The multifactor productivity ratio with the? university's plan to meet the expenses related to improving recruitment is

?(Enter your response rounded to two decimal?places.)