NASA only charged $378 million for the use of the space shuttle to fix the Hubble Telescope. The Space Shuttle Program at NASA had an annual budget of $4.6 billion and was averaging four launches per year. Simple division put the average cost of a space shuttle launch at $1.15 billion. However, $4 billion of NASA's $4.6 billion budget was for fixed costs. If a shuttle mission was not undertaken, NASA could avoid $44 million in launch and mission costs. Based on this information, what was the profit or loss for NASA of charging $378 million? (Enter your answer as a simple number without a $ sign. If your answer is in millions or billions, enter the entire number. If it is a loss, put a negative sign before your answer. If it is a profit, simply enter the number.)
NASA only charged $378 million for the use of the space shuttle to fix the Hubble Telescope. The Space Shuttle Program at NASA had an annual budget of $4.6 billion and was averaging four launches per year. Simple division put the average cost of a space shuttle launch at $1.15 billion. However, $4 billion of NASA's $4.6 billion budget was for fixed costs. If a shuttle mission was not undertaken, NASA could avoid $44 million in launch and mission costs. Based on this information, what was the profit or loss for NASA of charging $378 million? (Enter your answer as a simple number without a $ sign. If your answer is in millions or billions, enter the entire number. If it is a loss, put a negative sign before your answer. If it is a profit, simply enter the number.)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 5E
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