To improve its finance, the university decided to change its tuition and class size. The new overhead costs will be $28,000 per class section. Labor costs will increase to $6,500 per 3-credit course. Material costs will be about $25 per student for each 3-credit course with an average class size of 60 students. Tuition will be $200 per semester credit, which is supplemented by state support of $60 per semester credit. If instructors are going to work an average of 20 hours per week for 16 weeks for each 3-credit class of 60 students, what would be the new labor productivity (in terms of dollar per labor hour) for a 3-credit course?
Student tuition at Grace University is $160 per semester credit hour. The state supplements school revenue by $60 per semester credit hour. Average class size for a typical 3-credit course is 40 students. Labor costs are $5,000 per class, materials costs are $22 per student per class, and overhead costs are $18,000 per class. The multifactor productivity ratio currently is 1.11 and the labor productivity is $117.86 per labor hour if the instructors work on an average of 14 hours per week for 16 weeks for each 3-credit class of 40 students. To improve its finance, the university decided to change its tuition and class size. The new overhead costs will be $28,000 per class section. Labor costs will increase to $6,500 per 3-credit course. Material costs will be about $25 per student for each 3-credit course with an average class size of 60 students. Tuition will be $200 per semester credit, which is supplemented by state support of $60 per semester credit. If instructors are going to work an average of 20 hours per week for 16 weeks for each 3-credit class of 60 students, what would be the new labor productivity (in terms of dollar per labor hour) for a 3-credit course?
To improve its finance, the university decided to change its tuition and class size. The new overhead costs will be $28,000 per class section. Labor costs will increase to $6,500 per 3-credit course. Material costs will be about $25 per student for each 3-credit course with an average class size of 60 students. Tuition will be $200 per semester credit, which is supplemented by state support of $60 per semester credit. If instructors are going to work an average of 20 hours per week for 16 weeks for each 3-credit class of 60 students, what would be the new labor productivity (in terms of dollar per labor hour) for a 3-credit course?