Question

provide formulas and calculations

2-5 Government Organization A social welfare agency has a govem ment budget appropriation for 20X6 of 850,000. The agency's major mission is to help disabled persons who are unable to hold jobs. On the average, the agency supplements each person's income by $5,200 annually. The agency's fixed costs are $290,000. There are no other costs 1. How many disabled persons were helped during 20X6? 2 For 20X7, the agency's budget appropriation has been reduced by 15%. If the agency continues the same level of monetary support per person, how many disabled persons will be helped in 20X7? Compute the percentage decline in the number of persons helped. 3. Assume a budget reduction of 15%, as in requirement 2. The manager of the agency has discretion as to how much to supplement each disabled person's income. She does not want to reduce the number of persons served. On average, what is the amount of the supplement that can be given to each person? Compute the percentage decline in the annual supplement

Answer 1

answer-

2-5 Government Organization A social welfare agency has a govem ment budget appropriation for 20X6 of 850,000. The agency's major mission is to help disabled persons who are unable to hold jobs. On the average, the agency supplements each person's income by $5,200 annually. The agency's fixed costs are $290,000. There are no other costs 1. How many disabled persons were helped during 20X6? 2 For 20X7, the agency's budget appropriation has been reduced by 15%. If the agency continues the same level of monetary support per person, how many disabled persons will be helped in 20X7? Compute the percentage decline in the number of persons helped. 3. Assume a budget reduction of 15%, as in requirement 2. The manager of the agency has discretion as to how much to supplement each disabled person's income. She does not want to reduce the number of persons served. On average, what is the amount of the supplement that can be given to each person? Compute the percentage decline in the annual supplement

1) Number of disabled person helped during the year 2016=

Variavle cost or amount available for distribution/Supplement each person

or,850000-290000/5200

or,560000/5200

Thus , disabled person helped during the year =107.692(apporx.108)

where, total cost-fixed cost=variable cost

or,850000-290000=560000

2)

a) No of disabled person helped during the year=

Variable cost or amount available for distribution/ supplemet each person

or, 432500/5200

thus , NO. of disabled person helped during the year=83.17 ( approx. 83)

where,

Budget available for 2017=

850000-850000*15/100

or,850000-127500

=722500

now,

variable cost=

722500-290000

=432500

b)percentage decline in number of person helped=

(person in 2016-person in 2017/persont in 2016)100

or,(107.692-83.17/107.692)100

Thus , percentage declined =24.51%

3)

a)Supplement each person of 2016 without no.of person reduced=

supplement for 2017/No.of person of 2016

or,432500/107.692

Thus,supplement each person=4016.08

b)percentage declined in budget for 2017=

(supplement in 2016-supplement in 2017/supplement in 2016)*100

or,(5200-4016.08/5200)100

thus ,percentage declined in budget 2017=22.76%