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Difficulty: MediumData Interpretation: Bar Graphs, Line Graphs, Pie Charts, and Scatterplots

The pie chart below shows the distribution of a regional health network's total annual operating budget of $50,000,000\$50,000,000 among four divisions in 2025: Inpatient Care (40%40\%), Outpatient Care (25%25\%), Surgical Services (20%20\%), and Medical Research (15%15\%). The accompanying table details the breakdown of expenditures within the Medical Research division into three categories: Personnel (50%50\%), Equipment (30%30\%), and Operational Overhead (20%20\%). How much greater is the total dollar amount allocated to Surgical Services than the combined dollar amount allocated to Equipment and Operational Overhead within Medical Research?

  1. A
    $3,750,000
  2. $6,250,000Answer
  3. C
    $7,750,000
  4. D
    $8,750,000
  5. E
    $15,000,000

Answer

The total dollar amount allocated to Surgical Services is $6,250,000 greater than the combined allocation for Equipment and Operational Overhead within Medical Research.
Surgical Services receives 20%20\% of the total $50,000,000\$50,000,000 budget ($10,000,000\$10,000,000). Medical Research receives 15%15\% of $50,000,000\$50,000,000 ($7,500,000\$7,500,000). Equipment (30%30\%) and Operational Overhead (20%20\%) within Medical Research sum to 50%50\% of the Medical Research budget, which equals 0.50×$7,500,000=$3,750,0000.50 \times \$7,500,000 = \$3,750,000. The difference is $10,000,000−$3,750,000=$6,250,000\$10,000,000 - \$3,750,000 = \$6,250,000.

Step-by-Step Solution

1
Calculate the total dollar amount allocated to Surgical Services.
Surgical Services budget = 20%×$50,000,000=$10,000,00020\% \times \$50,000,000 = \$10,000,000.
Surgical Services constitutes 20 percent of the network's overall budget.
2
Calculate the total dollar amount allocated to the Medical Research division.
Medical Research budget = 15%×$50,000,000=$7,500,00015\% \times \$50,000,000 = \$7,500,000.
Medical Research constitutes 15 percent of the overall budget.
3
Determine the percentage and dollar amount for Equipment and Operational Overhead combined within Medical Research.
Combined percentage = 30%+20%=50%30\% + 20\% = 50\%. Dollar amount = 50%×$7,500,000=$3,750,00050\% \times \$7,500,000 = \$3,750,000.
The sub-table shows Equipment is 30 percent and Overhead is 20 percent of the Medical Research division's total budget.
4
Calculate the difference between the Surgical Services budget and the combined Research Equipment/Overhead budget.
Difference = $10,000,000−$3,750,000=$6,250,000\$10,000,000 - \$3,750,000 = \$6,250,000.
Subtracting the sub-category expenditures from the main division budget gives the required dollar difference.

Key Concept

Multi-tier data interpretation involving pie chart sector calculations combined with sub-table nested percentage breakdowns.
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Topics

Data Interpretation: Bar Graphs, Line Graphs, Pie Charts, and Scatterplots