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 stall developed income statement broken down by the degree offered. The dean is considering closing down the BBA program because the analysis, which follows, shows a loss, Tuition increases are not possible. The dean has asked for your advice. If the BBA degree programi i dropped school administration costs are not expected to change, but direct costs of the program, such as operating costs, building maintenance and classroom costs, would be saved. There will be no other changes in the operations or costs of other programs STATE UNIVERSITY BOSTNESS SCHOOL, DE Dear The State For the Academic Year Endine June Revenue $410,000 Costs Advertising program 30,000 Faculty salari 240,00 Degree operating costs (part time stair) 23,000 Building maintenance 37,500 Classroom costs (building depreciation) 115.00 Allocated school administration costs 32,780 Total costs 547200 Net loss 5 (8.200 Required: a. Using the worksheet below, determine which revenues and costs are probably differential for the decision to drop the BBA program b. What will be the net effect on the SUBS contribution (profit) if the BBA program is dropped? Required A Required B Using the worksheet below, determine which revenues and costs are probably program 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 Allocated school administration costs Total costs $ Recure Require Prey ch O E IC C A Required: o. Using the worksheet below, determine which revenues and costs are probably differential for the decision to drop the BBA program b. What will be the net effect on the SUBS contribution (profit) if the BBA program is dropped? Complete this question by entering your answers in the tabs below. Required A Required B What will be the net effect on the SUBS contribution (profit if the BBA program is dropped? SUBS Corbution (prah Will