What alternatives does company have to meet the budget


Response to the following problem:

Brooke Miller is in charge of the New York Regional Head Start program. Legislators have just cut the program's funding by 15%. Miller cannot cut total fixed costs like the rent for the program's offices or salaries of the administrative staff. The other main costs are salaries for teachers ($30,000/yr) and teachers' aides ($12,000/yr). Miller cannot cut the salary paid per teacher's aide.

What alternatives does Miller have to meet the budget? Will the 15% funding cut reduce services provided by more than 15%, less than 15%, or close to 15%? Explain your reasoning

 

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Financial Accounting: What alternatives does company have to meet the budget
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