Use the Information Below to Answer the Following Question(s)

Use the information below to answer the following question(s) .The following information is for Winnie Company:

-A social agency receives a budget appropriation of $11,000 monthly from the municipality.Annual fixed costs are projected to be $20,000 and the variable cost per client was $238.50 last year.Although the agency projects its case load to increase by the usual 15% this year (as it has done historically) , the municipality appropriated funds based on last year's case load.Which of the following strategies would be ineffective in dealing with the expected shortfall in budget appropriation for the agency?

A) reducing the number of clients served
B) reducing the variable cost of serving a client
C) reducing the total fixed costs
D) increasing funding from other sources
E) changing the measure of output used to calculate service

Correct Answer:

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