Finance+5342+Week+4+Part+2

Finance 5342 Week 4, Part 2 As I analyzed the snapshot data from District 1 and District 2 I found a few similarities and many differences. In regards to the three statements asked to analysis in this week’s assignment if found that each district is similar in Total Revenue per pupil and Total Operational Expenditures per pupil. District 1 has a Total Revenue per pupil of $10,529 and District 2 of $10,316. District 1 has a Total Operational Expenditure per pupil of $8,611 while District 2 is $8,908. This results in a difference of only $213 and $297 per district, with one area being higher in each district. The measurable difference in the first part of the analysis is teacher salary. The average teacher salary in District 1 is $39,771 and District2 is $50,307. This is $10,536 difference between the two school districts.

District 2 is a much larger district then District 1; 32,326 students compared to 830 students. The district data provided reflects that District 2 benefits from “economy of scale” which is a concept that supports increasing the size of an organization can result in a lower production cost. As I began to analyze and compare the districts data this become very obvious. Although the Total Revenue per pupil and Total Operational Expenditures per pupil are similar District 2 is able to do so much more. The overall infrastructure cost per student is much less in District 2. They have 6, 881 teachers and staff compared to district’s 1 total of 201. Not only is teacher salary higher but all staff salary is higher, including central administration almost being double in District 2. The data reflect that more teachers in District 2 have advanced degrees. District 2 is better able to recruit and retain teachers more so then District 1, which is key to an excellent instructional program. The snapshot data also supports that District 2 has a much higher percentage of students taking College Admission Exams, 85.6% compared to 60.5%. This again could be the result of higher academic rigor taking place in District 2 classrooms due to better teachers and better facilities.

An “Economy of scale” advantage is clearly evident in District 2. Overall they are able to generate a total revenue of $329,638,930 compared to District 1 total revenue of $8,823,250.