Your departmental budget for last year was $765,000. Your budget for this year reflects a 15% increase. You have decided to use 85% of the increase to add additional personnel. Which of the following scenarios would fit into your budget and use the largest portion of the available funds?
A)You decide to hire two additional clerks at annual salaries of $28,000 each and one additional analyst at a salary of $40,000.
B)You decide to hire two additional analysts at a salary of $38,000 each and one additional secretary at an annual salary of $39,000.
C)You decide to hire two additional clerks and two additional secretaries each at annual salaries of $28,500.
D)You decide to hire three additional analysts each at an annual salary of $36,500.

Question

Quizplus · Accepted Answer

The budget increase is 15% of $765,000, which is $114,750. 85% of this increase is $97,537.50. Option A totals $96,000 ($28,000 * 2 + $40,000), which is the largest amount that fits within the $97,537.50 budget for additional personnel.

Your Departmental Budget for Last Year Was $765,000