Question
Sunny Hospital which specialises in plastic surgeries has 4,000 hours of operating theatre available for the surgeries of A and B types. Surgery A lasts
Sunny Hospital which specialises in plastic surgeries has 4,000 hours of operating theatre available for the surgeries of A and B types. Surgery A lasts 5 hours; Surgery B: 2 hours Variable costs: for Surgery A: AUD 200, and for Surgery B: AUD 300, Fixed costs for the operating theatre: AUD 30,000 The hospital estimates that there would be a demand of up to 1,000 surgeries A, and up to 1,000 surgeries B Selling prices: for Surgery A: AUD 500, and for Surgery B: AUD 500
Which service mix would generate the highest profit?
1,000 surgeries A and 400 surgeries B
400 surgeries A and 800 surgeries B
800 surgeries A and 400 surgeries B
400 surgeries A and 1,000 surgeries B
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