South Hampton University is preparing its budget for the upcoming academic year. This is a specialisedprivate university that charges fees for all degree courses. Currently, 30,000 students are enrolled oncampus. However, the university is forecasting a 5 per cent growth in student numbers in the comingyear, despite an increase in fees to $3,000 per subject. The following additional information has beengathered 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. SouthHampton 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, administrationand professional/community service. Each of the academic staff teaches the equivalent of threesubjects 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 Hamptonmight take to accommodate the growing student numbers.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
