Student tuition at Boehring University is $180 per semester credit hour. The state supplements school revenue by $80 per semester credit hour. Average class size for a typical 3-credit course is 50 students. Labor costs are $4,200 per class, materials costs are $18 per student per class, and overhead costs are $24,000 per class. The multifactor productivity ratio currently is 1.34 and the labor productivity ratio is $174.11per hour if the instructors work on an average of 14 hours per week for 16 weeks for each 3-credit class of 50 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 $35,000 per class section from the current $24,000 per class section. The university's budget plan is to cover recruitment costs by increasing the average class size to 85 students. Labor costs will increase to $6,500 per 3-credit course. Material costs will be about $25 per student for each 3-credit course. Tuition will be $250 per semester credit, which is supplemented by state support of $80 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.)

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Student tuition at Boehring University is $180 per semester credit hour. The state supplements school revenue by $80 per semester credit hour. Average class size for a typical 3-credit course is 50 students. Labor costs are $4,200
per class, materials costs are $18 per student per class, and overhead costs are $24,000 per class. The multifactor productivity ratio currently is 1.34
and the labor productivity ratio is $174.11per hour if the instructors work on an average of 14 hours per week for 16 weeks for each 3-credit
class of 50 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 $35,000
per class section from the current $24,000 per class section. The university's budget plan is to cover recruitment costs by increasing the average class size to 85 students. Labor costs will increase to $6,500 per 3-credit course. Material costs will be about $25 per student for each 3-credit course. Tuition will be $250 per semester credit, which is supplemented by state support of $80 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.)

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