8-2 GALLowAY UNIVERSITY MEDICAL CENTER PHARMACY DLO 11 Galloway University Medical Center (GUMC) has a top- per year. To deal with the increased volume, the pharmacy will rated medical facility that draws patients from a three- need to hire two pharmacists at $90,000 each per year and an state area. On the day of discharge from the GUMC hospital, additional staff person (to handle shipping) at $50,000 per year. most patients fill their prescriptions from the GUMC pharmacy Alternatively, the pharmacy can generate 125,000 renewal However, when it comes time to renew them, they turn to alocal orders per year by offering 20 percent off the prices of renewal pharmacy because that is more convenient than driving back orders. With this option, two pharmacists must be hired, but no to the GUMC pharmacy. To encourage prescription renewals, additional staff person will be needed. GUMC is considering offering either free overnight delivery or reduced prices on renewal orders Currently, the GUMC pharmacy has revenue of $54,990,000 REQUIRED per year on 846,000 orders. The gross margin (price minus cost Estimate the impact on annual pharmacy profit of free overnight of drugs) is approximately 25 percent. Free overnight delivery is delivery and 20 percent off on renewals. Which option should be expected to cost$9 per order and result in 125,000 renewal orders selected