Helping Hands is a nonprofit organization that supplies electric fans during the summer for individuals in need. Fixed costs are $200,000. The fans cost $20.00 each. The organization has a budgeted appropriation of $480,000. How many people can receive a fan during the summer?

Question

Quizplus · Accepted Answer

First, we need to calculate the budgeted amount for purchasing fans:

Budgeted appropriation = $480,000 
Fixed costs = $200,000 
Variable costs per fan = $20

Budgeted amount for purchasing fans = Budgeted appropriation - Fixed costs = $280,000

Now we can calculate the number of fans that can be purchased:

Number of fans = Budgeted amount for purchasing fans / Cost per fan = $280,000 / $20 = 14,000 fans

Therefore, the answer is B.

Helping Hands Is a Nonprofit Organization That Supplies Electric Fans