Could i please have help on the following question?
University Hospital has two separate units that are part of the hospital but are two separate facilities. The first is the main hospital that performs emergency room functionsr surgeries] and recovery. Separate from the main hospital is an outpatient surgery center. In an effort to control costs, some of the patients that need minor surgeries are routed to the outpatient surgery center. The outpatient surgery center treats patients in three activity centers: {1} Surgery. (2} Phase I recov-ery. where patients recover while the patients are still asleep; (3} Phase II recovery. where patients recover while they are awake. Phase II recovery ends when the patients go home. Daily capacities and production levels are as follows. Phase I Phase II Surgery Recovery Recovery Dally capacity {surgeries} ........ 40 30 60 Daily production {surgeries} ...... 30 30 SD The hospital receives an average of SLDUU per surgery. {The surgeon's fee and the anesthesiolo-gist's fee are billed separately.) The variable cost per surgery is SSDD. There is sufficient demand for surgeries that the hospital could perform so surgeries per day. Surgeries not performed by the outpatient surgery center are sent to the main hospital's regular surgery rooms. The variable cost per surgery for regular surgery in the main hospital is STUD] while the hospital still receives SLDDU per surgery. The hospital management is considering the following alternatives: 'I . Continue performing 3|] surgeries per day at the outpatient surgery center and send the other 30 patients per day to the main hospital's regular surgery rooms. 2. Remodel the outpatient recovery rooms so that some of the Phase II space could be used for Phase I recovery. This would cost $2,0DD per day and enable the outpatient surgery center to perform 4t] surgeries per day. They would then send 20 patients to the hospital's regular operating rooms. 3. Expand the facilities of the outpatient surgery center at a differential cost of 31 5,000 per day so that it could perform so surgeries per day, and service 60 patients per day in Phase I recovery. That would mean the hospital would service so patients per day in Phase II recovery. Required Write a report to management of University Hospital recommending which of these aiternatives it should take. State your reasons why the hospital should accept your recommendation