The Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean

island of Saint Lucia. The blood bank has just finished its operations for September, which was a very busy month

due to a powerful hurricane that hit neighboring islands causing many injuries. The hurricane largely bypassed

Saint Lucia, but residents of Saint Lucia willingly donated their blood to help people on other islands. As a

consequence, the blood bank collected and processed over $20\%$ more blood than had been originally planned for

the month.

A report prepared by a government official comparing actual costs to budgeted costs for the blood bank appears

below. Continued support from the government depends on the blood bank's ability to demonstrate control over its

costs.

The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher

than expected due to the emergency on the neighboring islands. He also pointed out that the additional costs had

been fully covered by payments from grateful recipients on the other islands. The government official who

prepared the report countered that all of the figures had been submitted by the blood bank to the government; he

was just pointing out that actual costs were a lot higher than promised in the budget.