5. Refine plan: Example - Dept Business Benchmark
Business FY96 Unit FY96 Cost
Academic Areas FTEs Bus Cost Volume per Unit
College 1 9.2 $ 332,264 11,908 $ 27.90
College 2 8.1 $ 274,840 8,132 $ 33.80
College 3 8.0 $ 267,635 8,091 $ 33.08
College 4 1.6 $ 67,283 2,403 $ 28.00
College 5 3.7 $ 124,515 3,598 $ 34.61
Acad Affairs - other 6.5 $ 229,662 5,862 $ 39.18
subtotal 37.1 $ 1,296,199 39,994 $ 32.41
All other areas 57.3 $ 2,176,722 53,577 $ 40.63
Total 94.4 $ 3,472,921 93,571 $ 37.12
Using benchmark cost/unit of $27.90 x 93,571 units = goal of $2,610,631, a targeted savings of $862,290.