Question
Student tuition at Boehring University is $150 per semester credit hour. The state supplements school revenue by $100per semester credit hour. Average class size for
Student tuition at Boehring University is
$150 per semester credit hour. The state supplements school revenue by $100per semester credit hour. Average class size for a typical 33-credit course is 50 students. Labor costs are $4,400 per class, materials costs are $20 per student per class, and overhead costs are $27,000per class. The multifactor productivity ratio currently is 1.16 and the labor productivity ratio is $167.41per hour if the instructors work on an average of14hours per week for16weeks for each 33-credit class of 50 students.
Coach Bjourn Toulouse led the Big Red Herrings to several disappointing football seasons. Only better recruiting will return the Big Red Herrings to winning form. Because of the current state of the program, Boehring University fans are unlikely to support increases in the $192 season ticket price. Improved recruitment will increase overhead costs to $34,000 per class section from the current $27,000 per class section. The university's budget plan is to cover recruitment costs by increasing the average class size to 75 students. Labor costs will increase to $7,200 per 33-credit course. Material costs will be about $35 per student for each33 credit course. Tuition will be $200 per semester credit, which is supplemented by state support of $100 per semester credit.
a. The multifactor productivity ratio with the university's plan to meet the expenses related to improving recruitment is ___.
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