A new manager of a children\'s services program is assigned the task of administ

Question

A new manager of a children's services program is assigned the task of administering two ongoing programs; one that provides immunizations and one that provides diabetes screening. The total amount she can spend is $60,000. The following table shows the expenditures and benefits of the two programs. (HINT: What are the cost/opportunity cost of the programs).

A) A nurse urges the new manager to increase the level of spending in the immunization program $50,000 because of a prevailing unmet need. How should the new manager respond to the nurse's request?

Immunization Program Screening Program Expenditures Benefits Expenditures Benefits 10,000 60,000 10,000 20,000 20,000 90,000 20,000 40,000 30,000 115,000 30,000 60,000 40,000 135,000 40,000 80,000 50,000 150,000 50,000 100,000

Explanation / Answer

Total spend time is $60000

spending in the immunization=$50000

level of reducing is =60000-50000=$10000

The manager should reduce spending on immunization program to $10,000

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