P22-1A Lelaine Johnson is in charge of the Los Angeles Regional Head Start program. Legislators have just
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P22-1A Lelaine Johnson is in charge of the Los Angeles Regional Head Start program. Legislators have just cut the program's funding by 15%. Johnson 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). Johnson cannot cut the salary paid per teacher or teacher's aid. What alternatives does Johnson 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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Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones
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