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Dr. Stephanie White, the Chief Administrator of uptown Clini

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Dr. Stephanie White, the Chief Administrator of uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or reduced and still keep the agency functioning. Below are some data from the past year.

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Solution Summary

The solution provides detailed instructions and explanations on how to cut costs.

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The areas to cut expenses:

Assistant to the Administrator - $35,000
Cut One Secretary - 42,000
Reduce Supplies to a minimum - Cut $10,000
Eliminate Advertising and Promotion - $9,000
Eliminate Consulting - $10,000

Total cost savings: $106,000

Some reasons behind the proposed cuts.

The administrator does not need an assistant and still ...

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