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UBS) offers several degrees, including Bachelor of Business Administration (BBA). The new dean formation to make decisions and is reviewing a staff-developed income statement broken
UBS) offers several degrees, including Bachelor of Business Administration (BBA). The new dean formation to make decisions and is reviewing a staff-developed income statement broken down by ool is considering expanding the BBA program by offering an evening program inta nearby city. The ie same size (in terms of students). The school's CFO estimates that the combined BBA revenue (on) will be twice the current revenue. Because the evening program will be new, advertising expenses ee times their current level. Faculty salaries will double. Degree operating costs will increase by 50 d classroom costs will remain unchanged, but classroom space will be rented at a cost of $300,000 stration costs will increase by $30,000, and allocated school administration costs (for both programs) Using the worksheet below, determine what will be the Complete this question by entering your answers in the tabs below. Using the worksheet below, determine what will be the contribution of the combined BBA program given these estimates. 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. 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 (oncampus 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
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