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Using number of athletes as a basis of allocating indirect costs has some challenges. One of the challenges is the fact that different sporting events demand different fixed costs. Furthermore, different athletes may have disproportionate profits received from them thus…
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Case 1
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Download file to see previous pages In the current allocation, male athletes are allocated $36, 760, female athletes allocated $29, 084 thus making the difference to be $7, 676hence taking KSU away from complying with the Title IX because it does not relate well with the indirect costs used in the scenario.
The total cost per male and female student athlete if football is eliminated will be 29, 101for male and29084 for women. The total cost per women did not change because they did not participate in football. However, the total cost per men reduced because the number of footballers was reduced. The current cost per athlete is almost average making it fair in terms of Title IX.
3. Additional of female’s hockey team will reduce the cost per female athlete from 29, 084 to 25,689 while the cost per athlete for male athletes will remain unchanged. This will be against Title IX because the difference in cost is higher per athlete thus implying that less cost is allocated per female compared to what is put for male athletes. The additional cost will reduce the direct cost while indirect cost will remain unchanged though the increase in number of female athletes will mean that indirect cost will be reduced. The institution should ensure that the total cost per athlete is equal regardless of gender as stated by Title IX. That is the only sure way they can comply with the act.
4. When the number of events is used as a basis of calculating indirect cost, the total indirect cost for male athletes will be 3.817,029 while that for female athletes will be 4,061,469. In that regard, the total cost per athlete will be 33, 6262 for males while that of females will be 34, 904. This is fairer as per the Title IX because the cost per athlete is slightly close implying that the organization allocates almost similar amount of cost to all the athletes regardless of their age. Female athletes have more events ...Download file to see next pagesRead More
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