Suppose you are the
controller of Ryerson University. The university president is preparing for her
annual fundraising campaign for 2008-09. To set an appropriate target, she has
asked you to prepare a budget for the academic year. You have collected the following
data for the current year (2007-08).
a. For 2008-09, all faculty and staff will receive a 6 percent salary
increase. Undergraduate enrolment is expected to decline by 2 percent,
but graduate enrolment is expected to increase by 5 percent.

b. The 2007-08 budget for operation and maintenance of facilities is
$500,000, which includes $240,000 for salaries and wages. Experience
so far this year indicates that the budget is accurate. Salaries and wages
will increase by 6 percent and other operating costs by $12,000 in
2008-09.
c. The 2007-08 and 2008-09 budgets for the remaining expenditures are

d. Tuition is $70 per credit hour. In addition, the provincial government
provides $780 per full-time-equivalent student. (A full-time equivalent
is 30 undergraduate semester credit-hours or 24 graduate semester
credit-hours.) Tuition scholarships are given to 30 full-time undergraduates
and 50 full-time graduate students.
e. Revenues other than tuition and the government apportionment are

f. The chemistry/physics classroom building needs remodelling during
the 2008-09 period. Projected cost is $550,000.
1. Prepare a schedule for 2008-09 that shows, by division, (a) expected
enrolment, (b) total credit hours, (c) full-time-equivalent enrolment, and
(d) number of faculty members needed.
2. Calculate the budget for faculty salaries for 2008-09 by division.
3. Calculate the budget for tuition revenue and government apportionment
for 2008-09 by division.
4. Prepare a schedule for the president showing the amount that must be
raised by the annual fundraising campaign.

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Average salary of faculty member Average faculty teaching load in semester credit hours per year (eight undergraduate or six graduate courses) Average number of students per class UNDERGRADUATE GRADUATE DIVISION DIVISION $48,760 $48,760 24 18 888 30 20 1,800 30 22 20 24 Total enrolment (full-time and part-time students) Average number of semester credit hours carried each year per student Full-time load, semester hours per year 3,600 25