(A) St. Joseph\'s school has 1,200 students, each of whom currently pays $8,000
ID: 1168253 • Letter: #
Question
(A) St. Joseph's school has 1,200 students, each of whom currently pays $8,000 per year to attend. In addition to revenues from tuition, the school receives an appropriation from the church to sustain its activities. The budget for the upcoming year is $15million, and the church appropriation will be $4.8 million
(B) Sensing resistance to the idea of raising tuition from members of St. Joseph's Church, one of the board members suggested that the 960 children of church members could pay $8,000 as usual. Children of nonmembers would pay more
1. Refer to problem (A) and (B). A board member believes that if church members pay $8,000 in tuition, the most St. Joseph's can increase non-member tuition is $1,000 per year. She suggests that another solution might be to cap nonmember tuition at $9,000 and attempt to recruit more nonmember students to make up the shortfall. Under this plan, how many new non-member students will need to be recruited?
Explanation / Answer
Total number of students = 1200
Students of Church Members = 960 collection from students of church members at the rate of $8000 = 960* 800 = $7680000
Students of Non-Members = 240 collection from students of non-members at the rate of $9000 = 240*9000 = $2160000
Total revenue collection through fees = $2160000 + $7680000 = $9840000
Funds from grants = $4800000
Total available fund = $9840000 + $4800000 = 14640000
Total required budget = $1500000
Shortage of fund = $1500000 - $14640000 = 360000
Number of non member students to be recruited = $360000/ $9000 = 40
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.