Suppose you are the controller of Nebraska State University. The university president, Lisa Larsson, is preparing for her annual fund-raising campaign for 20X7–20X8. 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 (20X6–20X7):

For 20X7–20X8, 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 20X6–20X7 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 20X7–20X8.

● The 20X6–20X7 and 20X7–20X8 budgets for the remaining expenditures are as follows:

● 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:

● The chemistry/physics classroom building needs remodeling during the 20X7–20X8 period. Projected cost is $575,000.

1. Prepare a schedule for 20X7–20X8 that shows, by division, (a) expected enrollment, (b) total credit hours, (c) full-time-equivalent enrollment, and (d) number of faculty members needed.

2. Calculate the budget for faculty salaries for 20X7–20X8 by division.

3. Calculate the budget for tuition revenue and legislative apportionment for 20X7–20X8 by division.

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

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Undergraduate Division SS8,000 Graduate Division SS8,000 Average salary of faculty member Average faculty teaching load in semester credit-hours per year (eight undergraduate or six graduate courses) Average number of students per class Total enrollment (full-time and part-time students) Average number of semester credit-hours carried each year per student Full-time load, semester hours per year 24 18 30 3,60 25 30 20 1,800 20 24 20X6-20X7 $500,000 20X7-20X8 General administrative S525.000 Library 150,000 190,000 48,000 56,000 240,000 520,000 75,000 155,000 200,000 50,000 60,000 245,000 560,000 75,000 Acquisitions Operations Health services Intramural athletics Intercollegiate athletics Insurance and retirement Endowment income Net income from auxiliary services Intercollegiate athletic receipts 20X6-20X7 $200,000 325,000 290,000 20X7-20X8 $210,000 335.00X 300,000