2 Capital University has four departments. Each student takes 10 classes per year, and only takes course in their own faculty. The only sources of revenue is tuition. Information is as follows: < Item Total Salaries < Building Student Support and Administration < Other Total < < Amount (in $) Note 15,500,000 Each professor teaches 6 classes per year and all get paid the same amount. (note 1) 13,020,000 Each physical classroom is the same size. 195,000,000 Each student generally requires an equal amount of support < < 17,000,000 Science labs $10 million, Business trading room $2 million, Engineering labs $5 million 240,520,000 Note 1: for simplicity purposes, you can assume that there are also part-time professors who get paid proportionally to full-time profs (this is very much a fictitious place) < Faculty: Arts Science Engineering Business Total Number of classes per year Number of Students in Faculty 120 4,800 198 2,000 150 150 618 < < 600 2,700 10,100 Student enrollment: < < REQUIRED A. Calculate the cost per student using a traditional costing model where all costs are grouped together and allocated based on the number of students. < B. Using Activity Based Costing, calculate how much tuition should be charged per student in each faculty in order for the university to break even. < C. Compare the results between the current methodology and cost per student based on Activity Based Costing A and B and briefly comment on who is likely being cross- subsidized. < D. Based on your analysis, what can the University do to lower the cost per student for the faculty that has the highest overall cost per student