Determine the correct budget reduction for each department.

Steps to Solve

1. Identify Budget Allocation and Usage The allocated budget for each department is given:

   • Human Resources: €274,000
   • IT: €254,820

2. Calculate the Percentage of Budget Used To find out the percentage of the budget used, use the formula:

   $$ \text{Percentage Used} = \left( \frac{\text{Budget Used}}{\text{Allocated Budget}} \right) \times 100 $$

   For IT: $$ \text{Percentage Used (IT)} = \left( \frac{254,820}{274,000} \right) \times 100 \approx 93.01% $$

   For Human Resources (which is currently unspecified but calculated): $$ \text{Percentage Used (HR)} = \left( \frac{Budget\ Used\ (HR)}{274,000} \right) \times 100 $$

   This is where we need to identify the percentage used for HR.

3. Determine Budget Reduction Category Based on the percentages calculated:

   • If the budget used is less than 90%, the reduction is 5%.
   • If the budget is between 91% and 95%, the reduction is 2.5%.
   • If the budget is greater than 95%, the reduction is none.

   For IT (93.01%): The reduction is 2.5%.

   For Human Resources: Identify its usage percentage and check which category it falls in.

4. Final Check for Human Resources If the budget used for HR was not provided; if it's less than 90% the reduction would be 5%, otherwise if it falls between 91% - 95%: 2.5% reduction. If it's over 95%, the reduction is none.