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MIT is preparing its master budget for the upcoming academic year (an academic year consists...

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Accounting

MIT is preparing its master budget for the upcoming academic year (an academic year consists of two semesters). Currently, 12,000 students are enrolled on campus; however, the admissions office is forecasting a 5% growth in the student body despite a tuition hike to $140 per credit hour (this is fake, don't freak out). The following additional information has been gathered from an examination of MIT records and conversations with President Munson: MIT is planning to award 100 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 MIT's master budget, should the administration begin with a forecast of students or a forecast of faculty members? Briefly explain.

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