4 ms·

They are in a budget crunch. They likely don't have money to do both.

by tssva 3y ago

deaddodo 3y ago
They are in a budget crunch. So they should close one of the departments that pays for itself and others? I'm having a hard time processing your logic here.
- tssva 3y ago
  If they feel they can bring in even more revenue from investing that money elsewhere then yes.
  - deaddodo 3y ago
    I can only imagine that you are trolling, at this point. You understand the concept of profit, right? Let's just do numbers here: * Option A: you have 1mUSD to invest into Department X. * Option B: you have 1.2mUSD to invest into Department X and you get Department Y for free. Option A makes zero sense, logically.
    - tssva 3y ago
      Not trolling. I'm not sure you understand opportunity costs. I have 5m to invest in a department. Investing that 5m in Department A and earn 800k in net revenue. If I invest that same 5m in Department B I can earn 1.4m in net revenue. If I invest in Department A I'm giving up 600k in net revenue.
      - deaddodo 3y ago
        The department exists already, it needs zero investment. Did you read the article at all? If anything, it's going to absorb more opportunity cost ramping the department down than to let it continue operating. About the only way your argument would make sense is if they desperately needed the physical resources (offices, desks, etc); but considering they closed down other unprofitable departments, there are plenty available.
        tssva 3y ago
        I read the entire article and I reviewed the spreadsheet with financial data. The department costs were $5,846,146 in 2022. They had net revenues of $801,468. A 13.71 ROI. They served a student population of 61. The student population has been consistently shrinking over time. Compare this for example to the Department of Psychology which had costs of $6,485,775 and net revenue of $1,724,536 for an ROI of 26.59. This while serving a student population of 774 which has been consistently increasing over time. If they believe they can replicate the higher ROI while serving more students by switching the funding to another department they should do so.

They are in a budget crunch. They likely don't have money to do both.

by tssva 3y ago

They are in a budget crunch. They likely don't have money to do both.

They are in a budget crunch. So they should close one of the departments that pays for itself and others? I'm having a hard time processing your logic here.

tssva 3y ago
If they feel they can bring in even more revenue from investing that money elsewhere then yes.
- deaddodo 3y ago
  I can only imagine that you are trolling, at this point. You understand the concept of profit, right? Let's just do numbers here: * Option A: you have 1mUSD to invest into Department X. * Option B: you have 1.2mUSD to invest into Department X and you get Department Y for free. Option A makes zero sense, logically.
  - tssva 3y ago
    Not trolling. I'm not sure you understand opportunity costs. I have 5m to invest in a department. Investing that 5m in Department A and earn 800k in net revenue. If I invest that same 5m in Department B I can earn 1.4m in net revenue. If I invest in Department A I'm giving up 600k in net revenue.
    - deaddodo 3y ago
      The department exists already, it needs zero investment. Did you read the article at all? If anything, it's going to absorb more opportunity cost ramping the department down than to let it continue operating. About the only way your argument would make sense is if they desperately needed the physical resources (offices, desks, etc); but considering they closed down other unprofitable departments, there are plenty available.
      - tssva 3y ago
        I read the entire article and I reviewed the spreadsheet with financial data. The department costs were $5,846,146 in 2022. They had net revenues of $801,468. A 13.71 ROI. They served a student population of 61. The student population has been consistently shrinking over time. Compare this for example to the Department of Psychology which had costs of $6,485,775 and net revenue of $1,724,536 for an ROI of 26.59. This while serving a student population of 774 which has been consistently increasing over time. If they believe they can replicate the higher ROI while serving more students by switching the funding to another department they should do so.