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 ratio60%
Reduction in budget10%


Required

What is the percentage decrease in the amount of services the pharmacy can provide this year?


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Related Book For  book-img-for-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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