Reference no: EM131438775

Student tuition at Boehring University is ?$160160 per semester credit hour. The state supplements school revenue by ?$8080 per semester credit hour. Average class size for a typical 33?-credit course is 4545 students. Labor costs are ?$4 comma 2004,200 per? class, materials costs are ?$2222 per student per? class, and overhead costs are ?$28 comma 00028,000 per class. The multifactor productivity ratio currently is 0.980.98 and the labor productivity ratio is ?$144.64144.64 per hour if the instructors work on an average of 1414 hours per week for 1616 weeks for each 33?-credit class of 4545 students. Coach Bjourn Toulouse led the Big Red Herrings to several disappointing football seasons. Only better recruiting will return the Big Red Herrings to winning form. Because of the current state of the? program, Boehring University fans are unlikely to support increases in the? $192 season ticket price. Improved recruitment will increase overhead costs to ?$32 comma 00032,000 per class section from the current ?$28 comma 00028,000 per class section. The? university's budget plan is to cover recruitment costs by increasing the average class size to 7070 students. Labor costs will increase to ?$7 comma 0007,000 per 33?-credit course. Material costs will be about ?$3535 per student for each 33?-credit course. Tuition will be ?$225225 per semester? credit, which is supplemented by state support of ?$8080 per semester credit.

a. The multifactor productivity ratio with the? university's plan to meet the expenses related to improving recruitment is ?(Enter your response rounded to two decimal? places.)