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:

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? (your answer should be 3 to 5 complete sentences)

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

we cannot solely take a decision solely on the basis of quantitative factors that is numbers(profit or loss) but we should also consider the impact of qualitative factors which are equally important such as loss of reputation,customers loyality etc which in turn will also impoact the numbers that is (quantitative factors) by bringing down the revenue ultimately.

so in the above case the above sports are retained despite having the highest dollar of expenses is because the company is considering qualitative factors as well.thus both quantitaive and qualitative factors should be considered before making a final and informed decision.

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