2.

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State University Business School (SUES) offers several degrees, including Bachelor of Business Administration (BBA). Theruw dean believes in using cost accounting information to make decisions and is reviewing a state developed income statement broken down by the degree offered the dean is considering closing down the BBA program because the analysis, which follows, 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 direct costs of the program, such as operating costs, building maintenance and classroom costs would be saved. There will be no other changes in the operations or costs of other programs. STATE UNIVERSITY BUSINESS SRL, A DEGREE Deer The Statet For the Academic Year in June 30 Revue $ 45,00 st Murtiran 11,00 Faculty salaries 40,00 Deewating costs (partita 28,500 ilding maintenance 99,000 Classroon to buitine depreciation) 125,000 Allocated chaistration costs Total cost 44. Netlo 5 100 Required: 6. Using the worksheet below.determine which revenues and costs are probably differential for the decision to drop the BRA program b. What will be the net effect on the SUBS contribution profit) the BBA program is dropped Complete this question by entering your answers in the tabs below. b. What will be the net effect on Complete this question by entering your answers in the tabs below. Required A Required B Using the worksheet below, determine which revenues and costs are probably differential for the decision to drop the BBA program. STATE UNIVERSITY BUSINESS SCHOOL, BBA DEGREE Degree Income Statement Differential Revenues and Costs For the Academic Year Ending June 30 Revenue Costs Advertising - BBA program Faculty salaries Degree operating costs Building maintenance Classroom costs Allocated school administration costs Total costs $ 0 Required Required B > 3 Required: o. Using the worksheet below, determine which revenues and costs are probably differential for the decision to drop the BBA program b. What will be the net effect on the SUBS contribution (profit) if the BBA program is dropped? 5400 Complete this question by entering your answers in the tabs below. Required Requued What will be the net effect on the suas contribution (profit) the BBA program is dropped?