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Virginia State University (VSU) is planning its master budget for the upcoming academic year. Currently, 12,000 students are enrolled on campus; however, the admissions office is forecasting a 5 percent growth in student body despite a tuition hike to $80 each credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials:VSU is planning to award 150 tuition-free scholarships.?The average class has 30 students, and the typical student takes 15 credit hours each semester.
Each class is three credit hours.Each faculty member teaches five classes during the academic year.
Required:A. Compute the budgeted tuition revenue for the upcoming academic year.B. Determine the number of faculty members needed to cover classes.C. In preparing the university's master budget, should the administration begin with a forecast of students or a forecast of faculty members? Briefly explain.
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