Question

BUSINESS DECISION: ADMINISTERING A GOVERNMENT PROGRAM

According to the Food and Nutrition Service of the U.S. Department of Agriculture, in one school year the National School Lunch Program served 31.2 million school lunches. Of these, 16.1 million students received free lunches, 3.2 million received lunches at a reduced price, and 11.9 million paid full price for their lunches.

The federal government reimburses school districts $2.99 for each free lunch, $2.29 for each reduced-price lunch, and $0.25 for each paid lunch. In addition to cash reimbursements, schools are entitled to receive USDA foods called "entitlement" foods at a value of 19.50 cents for each lunch served.

You are the administrator in charge of the school lunch program for your school district. Last month the schools in your district served 25,000 free lunches, 15,000 "reduced price" lunches, and 60,000 regular priced lunches.

a. Calculate the amount of reimbursement you expect to receive from the NSLP for last month.

b. In addition to the lunch reimbursement, the NSLP program pays your district $0.045 per one-half pint of milk served with each meal. If each student averaged 1 one-half pint of milk per meal, calculate the total amount of milk reimbursement you expect for last month.

c. The Bottom Line − What is the total amount of reimbursement your district will receive for last month?

d. Red Tape − The government paperwork you must submit requires that you report the average reimbursement per student for both lunch and milk combined last month. Calculate this amount. Round to the nearest cent.

*I have gotten that $1.29 is the correct answer for d, yet I cannot get the right answers for the first three questions*

Answer 1

a]

amount of reimbursement = (number of free lunch * amount per free lunch) + (number of reduced price lunch * amount per reduced price lunch) + (number of paid lunch * amount per paid lunch) + (total number of lunches * value of entitlement per lunch)

amount of reimbursement = (25,000 * $2.99) + (15,000 * $2.29) + (60,000 * $0.25) + ((25,000 + 15,000 + 60,000) * $0.1950)

amount of reimbursement = $143,600

b]

milk reimbursement = total number of lunches * number of half-pints per lunch * amount per half-pint

milk reimbursement = (25,000 + 15,000 + 60,000) * 1 * $0.045 = $4,500

c]

Total reimbursement = $143,600 + $4,500 = $148,100

d]

Average reimbursement = total reimbursement / number of students

As the number of students is not given, we need to calculate.

Total number of lunches served = 25,000 + 15,000 + 60,000 = 100,000

Assuming 20 school days in a month, number of students = 100,000 / 20 = 5,000

Average reimbursement = $148,100 / 5,000 = $29.62