The St. Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of St. Lucia. The blood bank has just finished its operations for September, which was a particularly busy month due to a powerful hurricane that hit neighbouring islands, causing many injuries. The hurricane largely bypassed St. Lucia, but the residents of St. Lucia willingly donated their blood to help people on other islands.As a consequence, the blood bank collected and processed 24% 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. (The currency on St. Lucia is the East Caribbean dollar) Continued support from the government depends on the blood bank's ability to demonstrate control over its costs. ST. LUCTA BLOOD BANK Cost Control Report Litres of blood collected Variable costs: Medical supplies Lab tests Refreshments for donors Administrative supplies Total variable cost Fixed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost Total cost For the Month Ended September 30 Actual Budget Variance 750 600 150 F $ 9,500 6,630 $ 7,560 6,300 $1,940 U 330 U 1,490 1,200 290 U 430 300 130 U 18,050 15,360 2,690 U 13,000 13,000 3,100 2,650 450 U 1,300 1,300 600 18,000 $36,050 515 17,465 $32,825 85 U 535 U $ 3,225 U 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 neighbouring 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