STATE UNIVERSITY BUSINESS SCHOOL, BBA DEGAEE Degree Income Statement For the Academic Year Ending June 30 Required What revenues and costs are probably differential for the decision to drop the BBA program? What will be the net effect on the SUBS contribution (profit) if the BBA program is dropped? 1-24. Cost Data for Managerial Purposes Refer to the information in Exercise 1-23. The dean of the Business School is considering expanding the BBA program by oftering an evening program in a nearby city. The 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 1-23. 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 $100.000 per academic year. School administration costs will increase by $10,000, and allocated school administration costs (for both programs) will be $260,000 per academic year. Required a. What will the contribution of the combined BBA program be given these estimates? b Are there other factors the dean should consider before making her decision