VRV is a small hospital consisting of 30 beds. It is possible to accommodate 10 more beds as and when required.

The permanent staff on the rolls are:

A scrutiny of accounts in the year 2009 shows that during the year the hospital had run at full capacity (i.e., 30 patient beds per day) for 150 days and at 10 patient beds for 50 days.
The hospital had the practice of engaging doctors from outside to attend to the patients. The fees amounted to Rs. 20,000 p.m. and was based on the patients attended and the time devoted to them.
The following are the other expenses incurred during the year:

You are required to:

(a) Calculate the profi t or loss per patient day made by the hospital, if it charged Rs. 180 per day on an average from each patient;

(b) Compute the number of patient days that is required by the unit to break-even in the year 2010 assuming that there is no change in the expenses and revenues.

Transcribed Image Text:

Two supervisors, each drawing a salary of Rs. Four nurses, each drawing a salary of Rs. Four ward boys, each drawing a salary of Rs. 4,000 p.m. 2,000 p.m. 1,000 p.m.