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Please Show Your Work Capital University has four departments. Each student takes 10 classes per year, and only takes course in their own faculty. The
Please Show Your Work
Capital University has four departments. Each student takes 10 classes per year, and only takes course in their own faculty. The only source of revenue is tuition. Information is as follows: 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) E 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 crosssubsidized. 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 studentStep by Step Solution
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