39. A department submitted a request for an increase in the budget. The following justification was provided
The department currently has a budget of $2,684,568. The current expenses for services are $658,954 and we anticipate a 17% increase to these expenses due to
new legislation. As a result of the increase in services, the expenses
for supplies will increase from $142,535 to $149,661. Due to these circumstances, the
department is requesting a 22% increase to the total budget in
order to account for the surge in expenses.
Assuming the only other expenses are salaries, is the department's request justified?
A. Yes, since the department has a 17% increase in services and a 5% increase in supplies
B. Yes, the department will also incur an increase in salaries which will impact the total budget
OC. No, the increases to services and supplies only justifies an increase of less than 5% in the total budget
D. No, the department should initiate budget cuts of existing services