Suppose you are the controller of Memorial University.The university president is preparing for his annual fundraising campaign for 2010-2011.To set an appropriate target, he has asked you to draft a budget for the academic year.You have collected the following data for the current year (2009 - 2010).

a)For 2010-2011, all faculty and staff will receive a 6 percent salary increase.Undergraduate enrolment is expected to decline by 2 percent, but graduate enrolment is expected to increase by 5 percent.

Undergraduate Graduate Avg salary of faculty member 48,760 $48,760 Avg faculty teaching load in semester credit-hours per year (8 undergraduate or 6 graduate courses) 24 18 Avg number of students per class 30 20 Total enrolment (full-time and part-time students) 3,600 1,800 Avg number of semester credit hours carried each year per student 25 20 Full-time load, semester hours per year 30 242009-2010 2010-2011 General administrative $ 500,000 $ 525,000 Library Acquisitions 150,000 155,000 Operations 190,000 200,000 Health services 48,000 50,000 Intramural athletics 56,000 60,000 Intercollegiate athletics 240,000 245,000 Insurance and retirement 520,000 560,000 Interest 75,000 75,000