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I just need a. and b. answered for exercise 1-32. it just requires information from 1-31 which is why the chart is there. operations information
I just need a. and b. answered for exercise 1-32. it just requires information from 1-31 which is why the chart is there.
operations information you would like to have before re Ow -31. Cost Data for Managerial Purposes Administration (BBA). The new dean believes in a State University Business School (SUBS) offers severs, including Bachelor of Bu ions and is reviewing a staff-developed income statemen down by the degree offered counting information to make OSS. Tuition increases are not possible. The dean has at your advice. If the BBA de Hean is considering closing down the BBA program bere analysis, which follows, show wrogram, such as operating costs, building maintenance, ad classroom costs, would be program is dropped, school administration costs are not exuecics to change, but direct costs of 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 Advertising-BBA program Faculty salaries Degree operating costs (part-time staff) Building maintenance. Classroom costs (building depreciation) Allocated school administration costs 225,000 3,060,000 390,000 555,000 1,275,000 645,000 Total costs $6,150,000 Net loss. $ (150,000) quired at revenues and costs are probably differential for the decision to drop the BBA program? Wu be the net effect on the SUBS contribution (profit) if the BBA program is dropped? Is the other information you would like to have before recommending whether or not to drop i A program? Chapter 1 Cost Accounting: Information for Decision Making DS (LO 1-32. Cost Data for Managerial Purposes Refer to the information in Exercise 1-31. The dean of the Business School is considering expanding the BBA program by offering an evening program in a nearby city. The new evening program would be the same size (in terms of students). The school's CFO estimates that the combined BBA revenue (on-campus plus the evening program) will be twice the current revenue, as shown in Exercise 1-31. Because the evening program will be new, advertising expenses for the evening session will be three times their current level. Faculty salaries will double. Degree operating costs will increase by 50 percent. Building maintenance and classroom costs will remain unchanged, but classroom space will be rented at a cost of $300,000 per academic year. School administration costs will increase by $30,000, and allocated school administration costs (for both programs) will be $780,000 per academic year. Required Given these estimates, what will the contribution of the combined BBA program be? b. Are there other factors the dean should consider before making a decision? aStep by Step Solution
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