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Sagot :
Millbridge Ambulance Service (MAS) should not go ahead with consolidating its three locations into two because it will have a negative cost savings of $5,000.
What are cost savings?
Cost savings refer to the benefits that Millbridge can realize from some actions that reduce its expenses or costs.
Cost savings are derived from cost minimization strategies.
Data and Calculations:
Salaries of staff = $80,000
Rent = $20,000
Repairs/Maintenance = $10,000
General /Administration = $20,000
Supplies = $25,000
Total = $155,000
Savings in costs:
Loss of state subsidy = -$40,000
Rent = $20,000
Repairs/Maintenance = $10,000
Supplies = $5,000 ($25,000 - $20,000)
Total savings = -$5,000
Thus, Millbridge Ambulance Service (MAS) should not go ahead with consolidating its three locations into two because it will have a negative cost savings of $5,000.
Learn more about cost-saving strategies at https://brainly.com/question/24437926
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