Question
Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the departments cost records, Professor Morton has found
Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the departments cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms:
Term | Number of Sections Offered | Total Cost | |||
Fall, last year | 4 | $ | 13,000 | ||
Winter, last year | 3 | $ | 7,500 | ||
Summer, last year | 7 | $ | 13,500 | ||
Fall, this year | 5 | $ | 10,000 | ||
Winter, this year | 2 | $ | 6,500 | ||
Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes.
Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer nine sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. (Round intermediate calculations and final answers to the nearest whole dollar amount.)
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