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Various budget approaches play an important role in resource allocation in human service organizations. You are the administrator for an Orthopedic surgery practice you are preparing a budget matrix for MRI services. The matrix budget consists of line-item, functional, and program budgets. Cost of purchasing an MRI machine: $1,200,000
Annual cost of hiring new radiologist to provide professional service: $500,000
Annual maintenance and warranty: $30,000
Additional office space to accommodate MRI: 5,000 SF; rent is $20/SF
Hiring four additional technical staff at $60,000 per FTE
Other operating expenses: $50,000
Projected number of MRI procedures per year: 10,000

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