Suppose you are the controller of Nebraska State University. The university president, Lisa Larsson, is preparing for her annual fund-raising campaign for 20X720X8. To set an appropriate target, she has asked you to prepare a budget for the academic year. You have collected the following data for the current year (20X620X7):

	Undergraduate Division	Graduate Division
Average salary of faculty member	$58,000	$58,000
Average faculty teaching load in semester credit-hours per year (eight undergraduate or six graduate courses)	24	18
Average number of students per class	30	20
Total enrollment (full-time and part-time students)	3,600	1,800
Average number of semester credit-hours carried each year per student	25	20
Full-time load, semester hours per year	30	24

For 20X720X8, all faculty and staff will receive a 6% salary increase. Undergraduate enrollment is expected to decline by 2%, but graduate enrollment is expected to increase by 5%.

The 20X620X7 budget for operation and maintenance of facilities was $500,000, which includes $240,000 for salaries and wages. Experience so far this year indicates that the budget is accurate. Salaries and wages will increase by 6% and other operating costs will increase by $12,000 in 20X720X8.

The 20X620X7 and 20X720X8 budgets for the remaining expenditures are as follows:

	20X620X7	20X720X8
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

Tuition is $92 per credit hour. In addition, the state legislature provides $780 per full-time-equivalent student. (A full-time equivalent is 30 undergraduate hours or 24 graduate hours.) Full-tuition scholarships are given to 30 full-time undergraduates and 50 full-time graduate students.

Revenues other than tuition and the legislative apportionment are as follows:

	20X620X7	20X720X8
Endowment income	$200,000	$210,000
Net income from auxiliary services	325,000	335,000
Intercollegiate athletic receipts	290,000	300,000

The chemistry/physics classroom building needs remodeling during the 20X720X8 period. Projected cost is $575,000.

Prepare a schedule for 20X720X8 that shows, by division, (a) expected enrollment, (b) total credit hours, (c) full-time-equivalent enrollment, and (d) number of faculty members needed.

Calculate the budget for faculty salaries for 20X720X8 by division.

Calculate the budget for tuition revenue and legislative apportionment for 20X720X8 by division.

Prepare a schedule for President Larsson showing the amount that must be raised by the annual fund-raising campaign.