Question:
Lane college is developing schedules for its overall budget projection for the 1992-93 academic year. Relevant 1991-92 data include:
|
Undergraduates |
Graduates |
| Enrollment |
4200 |
1300 |
| Average number of credit hours carried each year per student |
30 |
24 |
| Average number of student per class |
25 |
14 |
| Average faculty teaching load in credit hours per year (number of classes taught multiplied by 3 credit hours per class) |
(8 x 3) 24 |
(6 x 3) 18 |
| Average faculty salary and benefits |
50000 |
60000 |
| Tution per credit hour (no other fees required) |
200 |
300 |
Chnages projected for 1992-93 and additional information:
1. Enrollments are expected to increase by 5 percent for both undergraduate and graduate programs.
2. Average faculty salary and benefits are expected to increase by 3 percent.
3. Lane has not previously used graduate students for teaching undergraduates, but will do so for 1992-93. All of the projected increased undergraduate enrollment will be taught by graduate students. Lane will recruit these graduate teaching assistants (TAs) in addition to the 5 percent student increase indicated. Each TA will carry half an average graduate student load and half an average faculty teaching load. TAs will receive a full remission of tuition fees and $10,000 in salary and benefits. For budgeting purpose, the tuition remission is considered both tuition revenue and a tuition scholarship.
4. Non-faculty costs for 1992-93 are to be budgeted by fixed and variable elements derived from estimate of cost at the following two levels of registration:
Total student credit hours(both schools) 140,000 180,000
Total estimated non-faculty costs $21,960,000 $22,320,000
Design a financial statement for the Current Year 1991-1992 and a projected income statement for the next year 1992-1993