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Southwest Hospital has an operating room used only for eye surgery. The monthly cost of rent, heat, and electricity for the operating room and
Southwest Hospital has an operating room used only for eye surgery. The monthly cost of rent, heat, and electricity for the operating room and its equipment is $5,475 and the monthly salaries for the people who staff the room total $15,000. Each surgery performed requires the use of $380 worth of medical supplies and drugs. To promote goodwill, every patient receives a bouquet of flowers the day after the surgery. In addition, the patients require dark glasses, which the hospital provides for free. It costs the hospital $15 for each bouquet and $20 for each pair of glasses. The hospital receives $1,000 for each eye operation performed. 1. a.) Find the Cost function. Define your independent (x) variable as number of surgeries performed. b.) Find the Revenue function. c.) Graph these two functions on one set of axes on graph paper. Make sure you include the scale, label the axes, and write which function is represented by each line - use different colors for the lines. d.) Find the break-even point. Interpret the meaning of this point in sentences that include the words cost, revenue, and profit. Make sure to give a reasonable answer by using whole numbers. Label the break-even point on your graph.
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