1. Assume that FlyRite won the contract with a bid of cost plus 15 percent, where for each to cost per flying hour. the price hout rype of helicopter. Next, compute the original expected profit of the Contracr.
2. Compute the profit (or loss earned by FlyRite for the first six months of activity Assume that the planned costs were equal to the actual costs. Also, assume that 50 percent of the fixed costs for the year have been incurred. Co thar have during the first months, assuคming that 50 cent of the hours originally projected (for each aircraft type) had been flown
3. Compute the profit (or loss) that the contract would provide FlyRite assuming the original price per flying hour and using the state agency's revised projection of hours needed.
4. Assume that the state has agreed to pay what is necessary so that FlyRite recei the profit originally expected in the contract. This will be accomplished by rems ing the price paid per flying hour based on the revised estimates of flying bour What is the new price per flying hour?