Systems have a good solid budget with a surplus/deficit of $66,800. The problem foreseen is with the group therapy counseling part of the program. The total variable expenses of $488,000 and the revenue amount of $500, 000 leaving Caresafe Foster Systems with a contribution amount of only $12,000. This could become a problem if the expenses increase for some unforeseen reason and the cost per visit remains the same, which would cause the contribution to be lower than $12,000 or no contribution at all.
No contribution would put CareSafe group therapy counseling at risk to keep this part of the program available. In the future to prevent this from happening would be to increase the cost per visit of group therapy counseling. Increasing the cost of group therapy counseling would increase the total of revenue minus the total variable expenses would increase CareSafe Foster System contribution for group therapy. Making those changes to the group therapy counseling part of the program would put CareSafe Foster System in a better financial position to continue to provide their clients with the best treatment and services.
