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 are tuition and government grants. The University receives a grant of $10,000 a year for each student. Costs: Item Total Salaries Amount Note 15,500,000 Each professor teaches 6 classes per year and all get paid the same amount. 13,020,000 Each classroom is the same size. 195,000,000 Each student generally requires an equal amount of support Building Student Support and Administration Other 17,000,000 Science labs $10 million, Business trading room $2 million, Engineering labs $5 million 240,520,000 Total Student enrollment: Faculty: Number of classes per year Number of Students in Faculty Arts 120 4,800 Science Engineering 198 150 2,000 600 Business 150 2,700 Total 618 10,100 In order to break-even, the university estimates that tuition should be $13,814 per student ($240,520,000 in costs divided by 10,100 students, less the government grant of $10,000 per student) REQUIRED A. Using Activity Based Costing, calculate how much tuition should be charged per student in each faculty in order for the university to break even. B. Compare the results between the current methodology and cost per student based on Activity Based Costing and briefly comment on who is likely being cross- subsidized. C. 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