Certified Professional in Healthcare Information and Management Systems (CPHIMS) Practice Exam 2026 - Free CPHIMS Practice Questions and Study Guide

To determine the amount that should be budgeted for the maintenance contract after a 10% increase, you begin with the current cost of the contract. If this amount is not provided, we can still understand how to arrive at the correct answer based on a hypothetical current contract amount.

For a budget increase due to a 10% rise, you would multiply the original contract amount by 1.10 (which represents the original amount plus the 10% increase). If we assume that the original contract amount was $11,454.55 (this would be $12,600 after a 10% increase), calculating the new budget would look like this:

Original amount x 1.10 = New amount.

Assuming an original amount of $12,600:

$12,600 x 1.10 = $13,860.

However, this particular calculation confirms that the chosen answer of $12,600 is indeed correct if the original amount before the increase was $12,000, because:

$12,000 x 1.10 equals $12,600.

Thus, for a maintenance contract that needs to account for a 10% increase, budgeting $12,600 indicates that the initial amount to which the increase