Management Accounting - Cost

The chief administrator of Uptown Clinical, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable futute, but increasing demand for services. In order to plan for reduced budgets, they must first identify where costs can be cut or reduced and stillkeep the agency functioning. Below are soem data from the past year.
Program Area                                                      Cost
Administration
Salaries:
Administration                                                       60,000
Assistant                                                               35,000
Two Secretaries                                                     42,000
Supplies                                                                35,000
Advertising and Promotion                                        9,000
Professional meetings/dues                                     14,000
Purchase Services:
Accounting and billing                                             15,000
Custodial                                                               13,000
Security                                                                 12,000
Consulting                                                              10,000
Community Mental Health Services
Salaries (2 social workers)                                       46,000
Transportation                                                        10,000
Outpatient mental health treatment
Salaries:
Psychiatrist                                                             86,000
Two Social Workers                                                 70,000

1. give a dollar range of costs to reduce budgets (worst and best case analysis)
2. Cut $94,000 in cost. Prioritize those cuts that can be made without impacing the opertion or quality care of the organization.
3. How would you advise the head doctor t prepare for reduced budgets?

Do an Excel Presentation