Aspen Hospital allocates overhead costs to departments such as pediatrics, maternity, psychiatric, and so forth. Aspen charges each separate department for common services such as meals and laundry and for administrative services such as billings, collections, and so forth.
For the year ended June 30, 1994, the operating room department at Aspen Hospital charged each patient an average of $1,650 per operation and had revenue of $2,656,500.
Expenses charged by the hospital to the operating room department for the year ended June 30, 1994, were as follows:

The only personnel directly employed by the operating room are supervising nurses, scrub nurses, and circulating nurses. The hospital has minimum personnel requirements based on total operations. Hospital requirements beginning at the minimum expected level of operations follow:

The staffing levels above represent fulltime equivalents, and it should be assumed that the operating room always employs only the minimum number of required fulltime equivalent personnel.
Annual salaries for each class of employee follow: supervising nurses, $68,500; scrub nurses, $59,000; and circulating nurses, $54,000.
The operating room has capacity for only 2,000 operations per year at the current time.
Calculate the minimum number of operations required for the operating room to break even for the year ending June 30, 1995. Patient demand is unknown, but assume that revenue per operation and costs remain at the same rates as last year.

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Basis of Allocation Operations Space ($) (S) Sanitation 112.800 Laundry 78,000 Laboratory, other than direct charges to patients 97,800 Pharmacy 83,800 Repairs and maintenance 95.200 7.140 General administration 331.760 Rent 375,320 Billings and collections 90,000 Bad debt expense 97,000 Other 21,700 125,980 563,500 953,000