Nuclear Company's costs were over budget by $25,200. The company is divided into Left and Right regions. The Left Region's costs were under budget by $1,500. Determine the amount that the Right Region's costs were over or under budget.

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Business

Elliana Horn

28 June, 22:56

Nuclear Company's costs were over budget by $25,200. The company is divided into Left and Right regions. The Left Region's costs were under budget by $1,500. Determine the amount that the Right Region's costs were over or under budget.

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Ryann Manning · Answer 1

The amount that the Right Region's costs were over budget by $26,700

Explanation:

The company's cost position relative to the budget is the net of the cost positions of both regions. If one region's cost is over the budget, while the other region's cost is under the budget then the net position is what gives the position of the company.

Let the over budget be treated as negative, then

-$25,200 = $1,500 + y

where y is the amount that the Right Region's costs were over or under budget

y = - $25,200 - $1,500

= - $26,700