2 the mri business proved to be less glamorous than you had anticipate
3. You are the budget manager of the organization Nurses Without Good Boundaries, an international aid group that rushes volunteer nurses off to disaster zones to provide emergency nursing care. A massive earthquake has just hit Yonkers, and you are creating a budget for the relief effort. Although you do not have to pay the nurses, you will have to cover the costs of their transportation and lunch, as well as purchase a liability insurance policy for each one for each day that they work.
You will need 1 nurse for each 20 disaster victims. Lunch costs $10 per day per nurse, and liability coverage is $7 per day per nurse. For transportation, you bus the nurses from the bus terminal in Queens (the nurses are responsible for getting themselves to the bus terminal). You have to pay $600 per day to charter the bus and driver; each bus can hold 30 nurses. You estimate that the relief effort will take 30 days (one month).
In addition, you should budget in the cost of your administrator (who gets paid $36,000 per year) as well as your office supplies and utilities (which cost about $18,000 per year).
a. Which expenses are variable and which are fixed? Are any of your expenses step-fixed?
b. What method would you suggest using to apply fixed costs to a disaster relief budget? Justify your answer.
Make a relief budget for 1000 victims.
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