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Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 12,500 students are enrolled on campus; however, the admissions office is forecasting a 6 percent growth in the student body despite a tuition hike to $65 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 170 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. WSU’s 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. Determine the number of faculty members needed to cover classes. Assume there is a shortage of full-time faculty members. Select at least five actions that WSU might take to accommodate the growing student body by selecting an "X" next to the action. You have been requested by the university’s administrative vice president (AVP) to construct budgets for other areas of operation (e.g., the library, grounds, dormitories, and maintenance). The AVP noted: “The most important resource of the university is its faculty. Now that you know the number of faculty needed, you can prepare the other budgets. Faculty members are indeed the key driver—without them we don’t operate.” Are faculty members a key driver in preparing budgets?
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