Cost Management

I added all of the amounts for a total of $457,000

Costs

Maximum $60,000 $12,000 Divide by 5

Maximum $35,000 $7,000 5

Maximum $42,000 $8,400 5

Maximum $35,000 $7,000 5

Minimal $9,000 $1,180 5

Minimal $14,000 $2,800 5

Minimal $15,000 $3,000 5

Minimal $13,000 $2,600 5

Minimal $12,000 $2,400 5

Minimal $10,000 $5,000 2

Maximum $46,000 $9,200 5

Minimal $10,000 $4.600 2.17

Maximum $86,000 $17,200 5

Maximum $70,000 $14,000 5

Total $457,000.00 $94,000.00

Range of costs $363,000.00 that would need to be depleted or cut.

I took 60,000 and divided it by 5 for a total of 12,000, Maximal Cut. 35,000/5 for a total of 7,000, Maximal cut. 42,000/5 for a total of 8,400, Maximal cut. 35,000/5 for a total of 7,000, Maximal cut. 9,000/5 for a total of 1,180, Minimal Cut. 14,000/5 for a total of 2,800, Minimal Cut. 15,000/5 for a total of 3,000, Minimal Cut. 13,000/5 for a total of 2,600, Minimal Cut. 12,000/5 for a total of 2,400, Minimal Cut. 10,000/2 for a total of 5,000, Minimal Cut.. 46,000/5 for a total of 9,200, Maximal Cut. 10,000/2.17391304347 for a total of 4,600, Minimal Cut. 86,000/5 for a total of 17,200, Maximal Cut. and 70,000/5 for a total of 14,000, Maximal Cut. With this budget it will save a few extra dollars

Cuts: Maximal Cuts

Cut one Secretary, Cut one Social worker, and Limited Professional meetings.

Minimal Cuts:

Lower salaries, Transportation can be lowered, Administration will either be lowered or cut, Assistant, Advertising and promotions, accounting and billings, Custodial, Security, Consulting, Psychiatrist and social worker

Committed fixed costs: Those costs of facilities and services that are shared by users.

(Introduction to Management Accounting, Page 92)

Discretionary fixed costs: Costs determined by management