Capital University, has approximately 10,000 students studying in four departments. The only source of revenue is tuition and government grants. The University receives a grant of $14,000 a year for each student. Tuition is based on the University breaking even.

Faculty:	Arts	Science	Engineering	Business
Number of classes per year	120	200	150	150
Number of Students in Faculty	4,800	2,000	600	2,700

Each student is enrolled in 10 classes per year, and only takes courses in their own faculty.

Costs:

Item	Amount	Note
Total Salaries	15,500,000	Each professor teaches 6 classes per year. The faculty of Arts pays each prof $24,000/year more than other faculty. (This is clearly a mythical university)
Building	13,020,000	Each classroom costs the same, regardless of size
Student Support and Administration	195,000,000	Each student generally requires an equal amount of support
Other	17,000,000	Science labs $10 million, Business trading room $2 million, Engineering labs $5 million
Total	240,520,000

REQUIRED

1. How much tuition should be charged per student assuming the same amount of tuition is charged per student.
2. Using Activity Based Costing, calculate how much tuition should be charged per student in each faculty.
3. Compare the results between A and B and briefly comment.