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The administrator of the Carewell Memorial Hospital is considering methods of providing X-ray treatments to patients. The hospital now refers about 200 patients per month
The administrator of the Carewell Memorial Hospital is considering methods of providing X-ray treatments to patients. The hospital now refers about 200 patients per month to a nearby clinic, and each treatment costs the patients P 850. If the hospital provides the treatment, a machine will be rented for P22,000 per month and technicians will be hired for P36,000 per month. Variable costs are P 100 per treatment.
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- The administrator considers charging the same fee as the clinic. By how much will the hospital increase its income if it provides the service?
- How much must the hospital charge to break-even on the treatments?
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