3.1 Calculate the number of athletic scholarships Midwest University can offer each year. 3.2 Suppose the total budget for next year is reduced by 22%. Fixed costs are to remain the same. Calculate the number of athletic scholarships that Midwest can offer next year. 3.3 As in 3.2 above, assume a budget reduction of 22% and the same fixed costs. If Midwest wanted to offer the same number of athletic scholarships as it did in 3.1, calcul
Question 3
Midwest University has an annual budget of R5 000 000 for athletic scholarships. Each athletic scholarship is for R20 000 per annum. Fixed operating costs of the athletics scholarship program are R600 000, and variable operating costs are R2 000 per scholarship offered.
Required:
3.1 Calculate the number of athletic scholarships Midwest University can offer each year.
3.2 Suppose the total budget for next year is reduced by 22%. Fixed costs are to remain the same. Calculate the number of athletic scholarships that Midwest can offer next year.
3.3 As in 3.2 above, assume a budget reduction of 22% and the same fixed costs. If Midwest wanted to offer the same number of athletic scholarships as it did in 3.1, calculate the amount that will be paid to each student who receives a scholarship.
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