A country's Ministry of Health is trying to develop an operating budget for a program that will deliver essential pharmaceuticals to its rural populations in the upcoming year. The program will build 200 community pharmacies. Each pharmacy is assumed to serve the same number of patients. Projected diseases, required drug regimens, and unit costs are shown in Table 1 (attached). The data in Table 1 are for the entire program, not per pharmacy. In addition to the cost of the drugs themselves, each community pharmacy is expected to incur annual operating costs as shown in Table 2 attached (cost per pharmacy). These costs are required to keep each pharmacy open regardless of the volume of patients a pharmacy serves.

A B C D E F G H 4 Use the following two tables to answer questions 1-4. Table 3 contains data for questions 5-6. 5 6 Table 1. Diseases, Required Drugs, and Unit Costs for the Community Pharmacy Program Number of Number childred of units affected per Unit of Cost per Unit of 7 Disease per year Required drug regimen regimen measure unit measure 8 Malaria 276,000 Chloroquine tablets (300 mg) 15 tablets $ 0.04 per tablet 9 Measles 162,000 Penicillin tablets 28 tablets 0.07 per tablet 10 Upper respiratory infection 245,000 Expectorant 0.125 gallon 4.00 per gallon 11 Other respiratory 154,000 Tetracycline syrup bottle 0.125 gallon $ 4.00 per gallon 12 GI infections 97,000 Piperazine syrup 0.125 gallon $ 4.00 per gallon 13 Neonatal tetanus 8,000 Tetanus antitoxin injection 1 injection $ 3.00 per injection 14 Diarrhea 336,000 Oralyte packets 4 packets $ 0.08 per packet 15 Strep throat 63,000 Penicillin tablets 28 tablets $ 0.07 per tablet 16 Otitis media 90,000 Penicillin tablets 28 tablets $ 0.07 per tablet 17 18 Table 2. Annual Operating Costs Per Pharmacy Cost (in US 19 Budget Item Dollars) 20 Pharmacist $ 3,000 21 Clerical Assistant 1,200 22 Depreciation (25 year life) 800 23 Utilities 60 24 Insurance 120 25 Office supplies 240 26 Building maintenance 1,000 27 TOTAL $ 6,420 Sheet129 The following information should be used in addition to the tables above to answer questions 5 and 6. 30 31 Assume that the total operating budget for the community pharmacy program is developed using the assumptions in Tables 1 and 2 above. 32 At the end of the first year of the program, the actual results for the treatment of neonatal tetanus are as shown below: 33 Table3 Number of Actual children number treated of units Actual during per Unit of cost per Unit of 34 Disease the year Required drug regimen regimen measure unit measure Neonataltetanus 7,000 Tetanus antitoxininjection 1 injection 3 3.50 per injection