Here is my question in Business Class, and I have no idea how to answer any of these questions. Please help me...
St. Andres Medical Center air ambulance operates out of the hospital's emergency department. The Helicopter transports patients between hospitals and from accident scenes to St. Andrews emergency department. It is staffed 24/7 by a nurse, a paramedic, and a pilot. Monday through Friday, a mechanic and an office manager are also employed.
Annual personnel cost is $440,000 regardless of how many flights are made. Fuel Costs average $65 per flight. Medicinal supplies add an additional $235 to each flight's cost. The remaining costs are included in the monthly lease on the helicopter. Each month the emergency department pays the helicopter owner $45,000.
Currently the air ambulance flies about 600 missions a year. The average amount billed per flight is $2,250, usually paid by the patient's insurance company.
A. What is the total annual fixed cost?
B. What is the variable cost per flight?
C. At 600 flights per year, what is the total annual cost?
D. At 600 flights per year, what is the total annual revenue?
E. What is the annual profit or loss at 600 flights?
Can anyone please help a stupid college kid in need?
St. Andres Medical Center air ambulance operates out of the hospital's emergency department. The Helicopter transports patients between hospitals and from accident scenes to St. Andrews emergency department. It is staffed 24/7 by a nurse, a paramedic, and a pilot. Monday through Friday, a mechanic and an office manager are also employed.
Annual personnel cost is $440,000 regardless of how many flights are made. Fuel Costs average $65 per flight. Medicinal supplies add an additional $235 to each flight's cost. The remaining costs are included in the monthly lease on the helicopter. Each month the emergency department pays the helicopter owner $45,000.
Currently the air ambulance flies about 600 missions a year. The average amount billed per flight is $2,250, usually paid by the patient's insurance company.
A. What is the total annual fixed cost?
B. What is the variable cost per flight?
C. At 600 flights per year, what is the total annual cost?
D. At 600 flights per year, what is the total annual revenue?
E. What is the annual profit or loss at 600 flights?
Can anyone please help a stupid college kid in need?