A social welfare agency has a budget from the provincial government for 2012 of $900,000. 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 $5,000 annually. The agency’s fixed costs are $280,000. There are no other costs.

1. How many disabled persons were helped during 2012?

2. For 2013, the agency’s budget appropriation has been reduced by 15 percent. If the agency continues the same level of monetary support per person, how many disabled persons will be helped in 2013? Compute the percentage decline in the number of persons helped.

3. Assume a budget reduction of 15 percent, 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 the average, what is the amount of the supplement that can be given to each person? Compute the percentage decline in the annual supplement.