Southwest Hospital has an operating room used only for eye surgery. The annual cost of rent, heat, and ectricity for the operating room and its equipment is $180,000, and the annual salaries for the people who staff this room total $270,000.
Each surgery performed requires the use of $380 worth of medical supplies and drugs. To promote goodwill, every patient receives a bouquet of flowers the day after surgery; In addition, one quarter of the patients require dark glasses, which the hospital provides free-of-charge. It costs the hospital$15 for each bouquet of flowers and $20 for each pair of glasses.
The hospital receives a payment of $1000 for each eye operation performed.
1. Identify the revenue per case and the annual fixed and variable costs, for running the operating room.
2. How many eye operations must the hospital perform each year in order to break even?
there is more parts for that question i will post it after answering these two parts
2006-11-01
22:09:13
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1 answers
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