A Government Program That Currently Costs Taxpayers $3

question 144

Multiple Choice

A government program that currently costs taxpayers $3.5 billion per year is cut back by 40 percent per year. Compute the budget after the fourth year. Round your answer to the nearest integer.

• A) $1,433,600,000
• B) $165,995,062
• C) $89,600,000
• D) $1,012,217,284
• E) $453,600,000

---

Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, contributing to covering fixed costs and generating profit.

Machine Hours

A measure of production time, corresponding to the total hours that machines are in operation.

Controllable

Costs or factors that can be adjusted or influenced by the actions of a company or individual within a particular timeframe.

Direct Materials

Essential substances or components specifically allocated to the creation of a product, identifiable in the final product.