Determine the correct budget reduction for each department based on the allocated budget of €189,559 and budget used of €166,812.
Understand the Problem
The question is asking to determine the correct budget reduction for a marketing department based on their allocated and used budgets. It provides criteria for determining budget reductions based on the proportion of the budget used relative to the allocated budget.
Answer
The budget reduction is $5\%$.
Answer for screen readers
The correct budget reduction for the marketing department is 5%.
Steps to Solve
- Identify the allocated and used budgets
From the problem, we have:
- Allocated Budget: €189,559
- Budget Used: €166,812
- Calculate the percentage of the budget used
To find the percentage of the budget used, use the formula:
[ \text{Percentage Used} = \left(\frac{\text{Budget Used}}{\text{Allocated Budget}}\right) \times 100 ]
Substituting in the values:
[ \text{Percentage Used} = \left(\frac{166,812}{189,559}\right) \times 100 ]
- Perform the calculation
Calculating the percentage:
[ \text{Percentage Used} \approx \left(\frac{166,812}{189,559}\right) \times 100 \approx 87.94% ]
- Determine the budget reduction category
Based on the percentage used:
- If the percentage used is less than 90%, then the budget reduction is 5%.
- If the percentage used is between 91% and 95%, then the budget reduction is 2.5%.
- If the percentage used is greater than 95%, no budget reduction occurs.
In our case, since ( 87.94% < 90% ), we select a 5% budget reduction.
The correct budget reduction for the marketing department is 5%.
More Information
This calculation evaluates the efficiency of budget usage in departments and applies set criteria to determine budget adjustments.
Tips
- Miscalculating the percentage due to errors in division.
- Confusing the criteria for budget reductions (e.g., not remembering the thresholds of 90% and 91%).
AI-generated content may contain errors. Please verify critical information
