QUESTION 4 [25 MARKS] Well Wish Hospital runs an intensive care unit (ICU). For this purpose, it has hired a building at a rent of Rs100,000 per month with the understanding that it would bear the repairs and maintenance charges also. The unit consists of 25 beds and 5 more beds can be comfortably accommodated when the occasion demands. The permanent staffs attached to the intensive medical care unit are as follows: Monthly fees Rs Doctor's fee Supervisors salaries Nurses salaries Ward boys salaries 150,000 76,000 90,000 84,000 The unit is open for patients all the 365 days, scrutiny of accounts reveals that only for 120 days in the year, the unit has the full capacity of 25 patients per day and for another 80 days, it has on an average 20 beds only occupied per day in the year. But, there are occasions when the beds are full in the year. Extra beds are hired at a charge of Rs1,000 per day-per bed and this does not come to more than 5 beds extra above the normal capacity on any day. The total hire charge for the extra beds incurred for the whole year amounts to Rs1,250,000. The other expenses for the year are as follows: Repairs to building Medicines Food to patients Expenses on Oxygen, X-ray Equipment expenses Laundry charges Rs 492,000 725,000 1,023,100 880,000 488,000 498,200 800,000 Administration expenses REQUIRED (a) If the unit recovers an overall amount of Rs4,200 per day on an average from each patient, what is the profit per patient day made by the unit? [20 Marks] (b) What are the main differences between the 'output' of service industries and the products of manufacturing industries? [5 Marks] Page 7 of 8