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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
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]
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