State University Business School (SUBS) offers several degrees, including Bachelor of Business Administration (BBA). The new dean believes in using cost accounting Information to make decisions and is reviewing a staff-developed Income statement broken down by the degree offered STATE UNIVERSITY BUSINESS SCHOOL, BBA DEGREE Degree Income Statement For the Academic Year Ending June 30 Revenue $ 6,000, eee Costs Advertising-BBA program 225,888 Faculty salaries 3,060,000 Degree operating costs (part-time staff) 390,000 Building maintenance 555,888 classroom costs (building depreciation) 1,275,000 Allocated school administration costs 645,800 Total costs $ 6,150,000 Net loss (150,000) $ Now 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. 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: a. Using the worksheet below, determine what will be the contribution of the combined BBA program given these estimates. b. Are there other factors the dean should consider before making a decision? Complete this question by entering your answers in the tabs below. Required A Required B Using the worksheet below, determine what will be the contribution of the combined BBA program given these estimates. STATE UNIVERSITY BUSINESS SCHOOL, BBA DEGREE Degree Income Statement Differential Revenues and Costs For the Academic Year Ending June 30 Revenue Costs Advertising - BBA program Faculty salaries Degree operating costs Building maintenance Classroom costs Classroom rental Differential school administration costs Total costs Net gain from BBA programs S Required Required B >