Expense Problems

Bayside hospital is projecting that their supplies to finish out this year at $12,000,000. If they anticipate a 4% inflation and a 2% volume growth, what would their budgeted supplies be at?

Dr. Smith is meeting with his accountant about this 2012 budget. Currently his rent costs him $4,000 per month. He does anticipate a 5% volume growth next year, but no need for additional space. He is in the 3rd year of a 5 year lease agreement that calls for a 2% annual escalation in his rent. Based on the information given, what would you project Dr. Smith's 2012 budget be for his rent?

You are the lab director for a large hospital. Currently you spend $10 per patient day for lab supplies. You anticipate that you will experience a 2% inflation for your costs next year. The hospital is projected to finish the current year with 10,000 discharges and a length of stay of 5 days. What is your current projected cost?

You anticipate that you will experience a 2% inflation for your daily costs next year. You also anticipate a 5% discharge growth and a reduction in ALOS from 5.0 to 4.5 days. Based on the new information, what would you project your next year budget to be? (Hint: Calculate your new total patient days and new per day cost first).

You are given the following information:

A.Current 9 month supply cost is $8,000.

B.Volume Growth next year is 4%

C.Expected supplyinflation next year is 5%

What is your current year project and next year supply budget?

4. Consider the CES production function with two inputs: f (L, K) = [ale + (1 - a) Ke]#. (a) What is the returns to scale for this production function? (b) Define the elasticity of substitution as follows d In (K/ L) O = d In (fL/ fx) Calculate o. (c) Show that for special values of the parameter p, the CES production function re- duces to Cobb-Douglas, linear and Leontief functions. (d) Derive the cost function.5. Consider the following CES production function: Q- Aak . + (1-a) [-"JU where A>0; 0