PA 375 Lecture Notes - Lecture 13: Taipei Metro, Waste Management

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Budget justification: on what basis shall it be decided to allocate x dollars to activity a instead of activity b, what type of services. Break-even analysis: analyze the numbers, revenues and expenses, and see if they equal, you can"t do one for every government jobs, i. e. police and fire. You can"t put a price on the charges; it"s not a charge based system: comparing costs and revenues of different levels of services using total cost = total revenue, tr=tc. The city owns and operates 6 cemeteries. The city charges per burial and buried 600 people last year. The cemeteries" fixed costs were ,000 per year and variable costs were per burial. What would the break-even point be: fc=120,00, vc=1. 40 2q=120,00+(1. 40q) . 6q=120,000: (950)(600)=800,000+(435)(600, 570,000=1,061,000, 600p=800,000+(435)(600, 600p=1,061,000, p=,768. 34, 950q=800,000+435q, 515q=800,000, q=1,554, outline bea example 2, tr=pxq, tc=fc+(vcxq, (p)(q)=fc+[(vc)(q), example: Trash collection generates per bag and costs the following: The city owns and operates a golf course.

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