Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4. Shendeti Ltd operates a 200-bed hospital and offers a number of specialised medical services. Due to the pandemic situation, this private clinic situated

image text in transcribed

Question 4. Shendeti Ltd operates a 200-bed hospital and offers a number of specialised medical services. Due to the pandemic situation, this private clinic situated in the suburb of Prishtina tries to maximise its utilisation. The hospital facilities and equipment are leased on a long-term basis. Patients pay 250 euro per day. One the basis of past cost data, Shendeti has estimated its variable costs per patient to be 182.80 euro per one patient-day. Fixed cost are 182,160 euros per month. The manager of the hospital has estimated that the hospital will have on average 4,600 patients- days per month. Required: a) How much is needed to charge per patient-day to break-even at this level of activity? [8 marks] b) Based on data above, how many patient-days must Shendeti have on average each month to earn a target profit of 60,000 euros per month? [9 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Scientist Audits The Earth

Authors: Stuart L Pimm

1st Edition

0813535409, 978-0813535401

More Books

Students also viewed these Accounting questions

Question

Describe your ideal working day.

Answered: 1 week ago