Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 15,500 students are enrolled on campus; however, the admissions office is forecasting a 6 percent growth in the student body despite a tuition hike to $70 per credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials:

WSU is planning to award 180 tuition-free scholarships.

The average class has 20 students, and the typical student takes 20 credit hours each semester. Each class is four credit hours.

WSUs faculty members are evaluated on the basis of teaching, research, and university and community service. Each faculty member teaches five classes during the academic year.

Required:

Prepare a tuition revenue budget for the upcoming academic year.

Solution fills in for the following

Tuition revenue budget:

Current student enrollment

Add: Increase in student body

Total student body:

Less: Tuition-free scholarships

Tuition-paying students

Credit hours per student year

Total credit hours

Tuition rate per hour

Forecasted tuition revenue