In assignment 3 you will add capital costs to your budget and total up all your salary, operating and capital costs to complete your budget estimate. Your capital costs are estimated as follows:

• You will need 30 computers at $800 each
• You will need 30 computer desks at $350 each
• You will need 6 high speed laser printers at $500 each
• You will need 6 printer desks at $200 each
• You will need software packages for each computer at $250 for each computer
• You will need surge protectors, cables, and miscellaneous other computer-related supplies at $1,000 total for the year

None of your capital costs will be financed, so your budget needs to include funds sufficient to purchase the above capital items outright.

Once you have computed your capital costs, add all your salary, operating, and capital costs together to determine your final estimated budget.

You have submitted your estimated budget to the governor who made no changes and submitted it to the legislature to obtain the appropriation you need to run the pilot program. The legislature reviewed your budget and plan for running the pilot program and has agreed to provide you with $740,000 in funding with which to run the pilot program for one year. Future funding and potential expansion of the program is contingent upon the successful results of the pilot program. To complete this assignment, please answer the following two questions:

Question 1: Is the funding provided by the legislature sufficient to run your program?

Question 2: If not, how would propose adjusting your budget to run the program within the limitations of the funding provided?

You should use Excel for your calculations and to answer the two questions above.