Read the following scenario and answer the THREE questions that follow.
Comprehension:
Future Leaders is one of the most prestigious private schools in a small town, next to an industrial hub. Most of its students come from affluent families, but there are some who belong to middle-income and lower-middle-income families as well. The school charges an annual fee of ₹2 lakhs, inclusive of all charges, payable at the beginning of the academic year. Roughly 20% of the fees collected goes into paying the salaries of the teachers, another 30% for the upkeep of the school, and roughly 20% for miscellaneous expenses in running day-to-day businesses like supply, cleaning etc. The remaining goes into an exigency corpus.
This year, like the rest of the country, the town has been hit by the coronavirus pandemic. The classes have been shifted online. The local authorities have mandated that all schools have to reduce their fees by 20%. Further, parents should be given extended time to pay the fees if they are in financial distress. Six months into the academic year, only 40% of the parents have paid even the reduced annual fees.
Teachers of Future Leaders contribute to its stellar reputation. Moreover, they assist the school in arriving at several critical decisions. Biswas resents their involvement in school matters as he has to listen to their collective voice rather than the other way around.
Biswas feels that the current situation offers him an opportunity to get back at the teachers. He wants to discuss the possibility of reducing teachers’ salaries by 20% with the board of trustees.
Which of the following, if true, will BEST enable Biswas to present his case for reducing teachers’ salaries?
Select an option to reveal the answer and explanation
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