Question: Due to budget cutbacks colleges and universities across the country

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.

1. If the three programs were eliminated, do you think WTS would see an immediate improvement in its bottom line? Why or why not?
2. Determine whether each individual line item would be completely eliminated, partially eliminated, or not eliminated. Label the items as avoidable, partially avoidable, or unavoidable, and explain any assumptions you made in determining the classification.
3. Major sports such as men’s football and basketball are seldom, if ever, eliminated even though they generally have the highest dollar amount of expenses. Why are these sports retained?
What other factors could affect which teams are eliminated?
4. Choose one of the institutions identified in requirement 3 to investigate in more detail. For that college or university, discuss the factors that led to its choice(s), the anticipated impact on direct participants (coaches, athletes, etc.), and the total amount of savings expected. Also include reactions from the student body and the local and collegecommunities.
View Solution:

Sale on SolutionInn
  • CreatedFebruary 27, 2015
  • Files Included
Post your question