the center for performing arts had the following expenses: $5,000 of performances expense, $2,800 of fund-raising expense, $3,000 of instructional classes expense, and $1,700 of general and administrative expense. what is the program expense ratio (rounded)?

Respuesta :

Programme Expenses Ratio  : 64%

Total Expenses = Performance Expenses +Fund raising expenses +Industrial Class Expenses +General and Administrative Expenses

Total Expenses  = $5,000+ 2,800+3,000+1,700  = $12,500

Programme Expenses = Performance Expenses + Industrial Classes Expenses

    = $5,000 +$3,000  = $8,000  

Programme Expenses Ratio  = Programme Expenses / Total Expenses

                                     = $ 8,000 / $12,500 = 0.64  ,

                                      =64%

Programme Expenses Ratio :The program expense ratio is the relative measure of program expense to total expense. In other words, this ratio takes a nonprofit’s program expenses and divides them by its total expenses.

As mentioned above, program expenses are the highest portion of the total costs incurred by nonprofits. Similarly, investors associate these expenses with the highest efficiency in achieving missions.

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