Princeton offers a large range of undergraduate courses. TheUniversity is interested in determining the cost equation for thefacilities cost as a function of student credit hours so that it can moreaccurately budget its facilities costs as enrollment grows. Informationfor the high and low cost semesters and volumes for last 5 yearsappears below:SemesterSpring 2016Fall 2017Student Credit HoursFacilities Cost160,000$750,000140,000$660,000Using the high-low method, with student credit hours as the activitydriver, what is the equation for facilities cost (FC) as a function of studentcredit hours?FC $4.50/ student credit hourO FC = $1.14 / student credit hourO FC $30,000+ $4.50/ student credit hourO FC $568,182 + $0.22 / student credit hour◄ PreviousMAR18tvCNext▸

The high-low method is used to differentiate the mixed cost. Mixed cost is the combination of fixed…

Princeton offers a large range of undergraduate courses. The University is interested in determining the cost equation for the facilities cost as a function of student credit hours so that it can more accurately budget its facilities costs as enrollment grows. Information for the high and low cost semesters and volumes for last 5 years appears below: Semester Student Credit Hours Facilities Cost Spring 2016 Fall 2017 160,000 $750,000 140,000 $660,000 Using the high-low method, with student credit hours as the activity driver, what is the equation for facilities cost (FC) as a function of student credit hours?

Princeton offers a large range of undergraduate courses. The University is interested in determining the cost equation for the facilities cost as a function of student credit hours so that it can more accurately budget its facilities costs as enrollment grows. Information for the high and low cost semesters and volumes for last 5 years appears below: Semester Student Credit Hours Facilities Cost Spring 2016 Fall 2017 160,000 $750,000 140,000 $660,000 Using the high-low method, with student credit hours as the activity driver, what is the equation for facilities cost (FC) as a function of student credit hours?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Capital University has four departments. Each student takes 10 classes per year, and only takes course in their own faculty. The only sources of revenue are tuition and government grants. The University receives a grant of $10,000 a year for each student. Costs: Item Amount Note Total Salaries 15,500,000 Each professor teaches 6 classes per year and all get paid the same amount. Building Student Support 13,020,000 Each classroom is the same size. 195,000,000 Each student generally requires an equal amount of support and Administration Other 17,000,000 Science labs $10 million, Business trading room $2 million, Engineering labs $5 million Total 240,520,000 Student enrollment: Faculty: Number of classes per year Number of Students in Faculty Science Engineering 150 Arts Business Total 120 198 150 618 4,800 2,000 600 2,700 10,100 In order to break-even, the university estimates that tuition should be $13,814 per student ($240,520,000 in costs divided by 10,100 students, less the…
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An outpatient surgery center performs 10,000 procedures in 2020 and incurs a total cost for utilities equal to $20,000. In 2021, the center performs 12,000 procedures and incurs a utilities cost equal to $22,000. The total fixed cost of utilities (either year) is _____________ .
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