Problem 9-34 Revenue and Labor Budgeting for a University; Budget Linkages (LO 9-5, 9-7, 9-8) Eastern State University (ESU) is preparing its master budget for the upcoming academic year. Currently, 15,500 students are enrolled on campus; however, the admissions office is forecasting a 6 percent growth in the student body despite a tuition hike to $70 per credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials: ESU is planning to award 180 tuition-free scholarships. . The average class has 20 students, and the typical student takes 20 credit hours each semester. Each class is four credit hours. ESU operates two semesters per year and has no summer term ESU's faculty members are evaluated on the basis of teaching, research, and university and community service. Each faculty member teaches fives classes during the academic year. Required: 1. Prepare a tuition revenue budget for the upcoming academic year. Tuition revenue budget: Total student body Tuition-paying students Total credit hours Forecasted tuition revenue 2. Determine the number of faculty members needed to cover classes Faculty needed 3. Assume there is a shortage of full-time faculty members. List at least five actions that ESU might take to accommodate the growing student body. (Select all that apply. Hire part-time instructors Use graduate teaching assistants Increase the teaching load for each professor Reduce the number of courses offered Increase class size and reduce the number of sections to be offered Have students take an Internet-based course offered by another university Shift courses to a summer session 4. You have been requested by the university's administrative vice president (AVP) to construct budgets for other areas of operation (e.g., the library, grounds, dormitories, and maintenance). The AVP noted: "The most important resource of the university is its faculty. Now that you know the number of faculty needed, you can prepare the other budgets. Faculty members are indeed the key driver-without them we don't operate." Are faculty members a key driver in preparing budgets? No Yes