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
Related questions
Question
![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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F03256047-c4d6-4acb-b3bb-18185f2c131a%2F14dfed83-5e4e-4b58-9838-5d5e341beec7%2Fcqbudfe_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.)
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