Pharmacy Health Services at Overland University provides certain medications to students free of charge. Currently, 40 percent
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Pharmacy Health Services at Overland University provides certain medications to students free of charge. Currently, 40 percent of the pharmacy’s costs are fixed; the other 60 percent are variable. The pharmacy’s budget was $300,000 last year, but the university recently cut this year’s budget by 10 percent.
Budget | $ 300,000 |
Variable cost ratio | 60% |
Reduction in budget | 10% |
Required
What is the percentage decrease in the amount of services the pharmacy can provide this year?
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Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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