Question
1. Christchurch School has 4000 students, each of whom currently pays $1500 per semester to attend. In addition to revenues from tuition, the school receives
1. Christchurch School has 4000 students, each of whom currently pays $1500 per semester to attend. In addition to revenues from tuition, the school receives an appropriation from the church to sustain its activity. The budget for the upcoming semester is $12 million. The church appropriation will be $4.8 million. (a) By how much will the school have to raise tuition to keep from having a shortfall? (b) One of the trustees senses that members of the church were resistant to the idea of raising tuition, so he suggests that the 2800 children of members pay $1500 as usual. Children of nonmembers would pay more. What would the nonmember tuition be if Christchurch wanted to continue to plan for a $12 million budget? (c) Another trustee believes that if members pay only $1500 in tuition, the most Christchurch can charge nonmembers is $2000 per semester. She suggests that another solution might be to cap nonmember tuition at $2000 an d attempt to recruit more nonmember students to make up the shortfall. Under this plan, how many new nonmember students need to be recruited?
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