Question

South Hampton University is preparing its budget for the upcoming academic year. This is a specialised private university that charges fees for all degree courses. Currently, 30,000 students are enrolled on campus. However, the university is forecasting a 5 per cent growth in student numbers in the coming year, despite an increase in fees to $3,000 per subject. The following additional information has been gathered from an examination of university records and conversations with university managers:

 South Hampton is planning to award scholarships to 200 students, which will cover their fees.

 The average class has 80 students, and the typical student takes 4 subjects per semester. South Hampton operates 2 semesters per year.

 The average academic staff salary is $120,000 per annum including on-costs.

 South Hampton’s academic staff are evaluated on the basis of teaching, research, administration and professional/community service. Each of the academic staff teaches the equivalent of three subjects during the academic year.

Required:

a) Prepare a revenue budget for the upcoming academic year.

b) Determine the number of staff needed to cover classes.

c) Assume there is a shortage of full-time academic staff. List at least five actions that South Hampton might take to accommodate the growing student numbers. (200 words)

Answer 1