Due to budget cutbacks, colleges and universities across the country are struggl

Question

Due to budget cutbacks, colleges and universities across the country are struggling to cut expenses. Frequent casualties of these money-saving decisions are organized sports teams. Suppose that a fictional college, West Tennessee State (WTS), has identified three teams to eliminate in its effort to cut costs: men’s lacrosse, women’s softball, and men’s diving. A summary of each sport’s annual revenue and costs follows:

The combined net loss from these three programs is $582,000.

Do you think WTS would see an immediate improvement in its bottom line (loss) of $582,000? Why or Why not?

(5pts)

Evaluating Decision to Eliminate Collegiate Sports Programs: Quantitative and Qualitative Considerations Men's Lacrosse Women's Softball Men's Diving Revenue $ 25,600 $ 37,800 $ 14,900 Less: Expenses Scholarships Cooches salarles Team travel Venue malntenance Equipment Team support 150,000 53,000 21,100 15,000 4,300 16,600 $234,4001 130,000 49,700 28,500 20,000 2,800 11,200 %204,400) 40,000 62,800 13,200 35,000 800 6,300 143,200) Net operating Income (loss)

Explanation / Answer

a company's decision to eliminate a programme or a process should not solely be based on the quantitative factors but qualitative factors are equally important andd should be considerd before making a final decision.

in the above case if the decision is to be based on quantitative factors that is on the basis of numbers we should eliminate the loss generating activities from the bottom line however we should also consider the qualitative factors such as loss of reputation among its customer base and as a result the market share of the company will also come down.

so the immediate improvement would not be of $582,000.it would be net of the impact on the profit after considering the qualitative factors because some of its customers as a result might shift to competitors that will impact the revenue.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.