QUESTION SEVEN A private hospital is organized into separate medical units which offer specialized nursing care (e.g. maternity unit, pediatric unit). Figures for the pediatric unit for the year to 31 May have just become available. For the year in question the pediatric unit charged patients TZS 200 per patient day for nursing care and TZS 4.4m in revenue was earned. Costs of running the unit consist of variable costs, direct staffing costs and allocated fixed costs. The charges for variable costs such as catering and laundry are based on the number of patient days spent in hospital. Staffing costs arc established from the personnel requirements applicable to particular levels of patient days. Charges for fixed costs such as security, administration etc. are based on bed capacity, currently 80 beds