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Sunny Hospital which specialises in plastic surgeries has 4,500 hours of operating theatre available for the surgeries of A and B types. Surgery A lasts
Sunny Hospital which specialises in plastic surgeries has 4,500 hours of operating theatre available for the surgeries of A and B types. Surgery A lasts 4 hours; Surgery B: 5 hours Variable costs: for Surgery A: AUD 300, and for Surgery B: AUD 200, 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 400 Which service mix would generate the highest profit? 1,000 surgeries B and 100 surgeries A 400 surgeries A and 800 surgeries B 400 surgeries B and 800 surgeries A 1,000 surgeries A and 100 surgeries B
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