1-29. Cost Data for Managerial Purposes (LO 1-3) State University Business School (SUBS) offers several degrees, including Bachelor of Busines Administration (BBA). The new dean believes in using cost accounting information to ma decisions and is reviewing a stafl-developed income statement broken down by three The dean is considering closing down the BBA program because the analysis whiRA shows a loss. Tuition increases are not possible. The dean has asked for your advice. If the BBA degree program is dropped, school administration costs are not expected to change, but direc costs of the program, such as operating costs, building maintenance, and classroom costs, wou be saved. There will be no other changes in the operations or costs of other programs. STATE UNIVERSITY BUSINESS SCHOOL, BBA DEGREE Degree Income Statement For the Academic Year Ending June 30 $6,000,000 Revenue.... Costs 225,000 3,060,000 390,000 555,000 1,275,000 645,000 $6,150,000 $ (150,000) Faculty salaries Allocated school administration costs. Net loss... Required What revenues and costs are probably differential for the decision to drop the BBA program? What will be the net effect on the SUBS contribution (profit) if the BBA there any other information you would like to have before recommending whether drop the BBA program? program is dropped? Is or not to