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Foster City has an ambulance service that is used by the two public hospitals in the city. Variable ambulance costs are budgeted at $ 4

Foster City has an ambulance service that is used by the two public hospitals in the city. Variable ambulance costs are budgeted at $4.20 per mile. Fixed ambulance costs are budgeted at $120,000 per year. Mercy Hospital requires 45% of the ambulance service peak-period capacity, planned to use 15,000 miles, and actually used 16,000 miles. How much ambulance service cost will be allocated to Mercy Hospital at the end of the year?

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