Step 1: Review the monthly expenditures below. Imagine that like so many companies, you experience a cash crunch. Your revenue (income) shrinks 25%, so you must trim your budget.

If your current monthly expenditure is $545.00 what is the new total with the reduction of 25%?

My total monthly expenditure would now be $408.75 after having a reduction of 25%

Where will you trim?

I would trim the complimentary coffee down to $60.00 by finding a new coffee vendor. I would find a new catering service for our monthly office brunch. I’m going to start saving money, by buying my paper and plastic goods in bulk, I will change out the water jugs myself or have my employees assist me on changing them out instead of paying a vendor to change them out. …show more content…
Therefore, the adjustments that I have made in the budget. I expect a boost in morale and work performance by my employees.

Total monthly expenditures for an office of 30

Current 25% 15%

Office Supplies $65.00. $0.00 $0.00
Employee of the Month $30.00 $0.00 $20.00
Electric Water Cooler $90.00 $88.75 $0.00
Paper Cups $15.00 $10.00 $0.00
Plastic Ware $25.00 $15.00 $0.00
Complimentary Coffee $120.00 $60.00 $0.00
Training Budget $50.00 $0.00 $20.00
Monthly Office Brunch $150.00 $100.00 $21.31
Total Expenditures $545.00 $408.75 $470.06

Step 2: If, at a later date, you experience a modest revenue increase of about 15%, what would you reinstate in the office?
I would end up reinstating the employee of the month and the training budget for our company. to better assist our employees on having the tools that they need in order to be successful in their job functions and recognition they deserve for doing an outstanding job performance

After your reduction of 25%, what would be the new total with the increase of 15%?
What would you