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Upvote will be given please show working out ASAP QUESTION 2 - THROUGHPUT ACCOUNTING Lacerfix is a private hospital offering three types of surgical procecures
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QUESTION 2 - THROUGHPUT ACCOUNTING Lacerfix is a private hospital offering three types of surgical procecures ionown as A,B and C. Each of them uses a pre-operative injection qiven bs a nurse before surgery The company currently rents an operating the atre from a neighbouring govemment hospital. The managing drector of the company is keen to masimise profits and has heard of something called throughput accounting, which may help him to do this. The following information is avalable: (1) All patients go through a five step process, irrespective of which procedure they are having. The process involves an advisor. nurse, anaesthe tist. surgeon. and recovery specialist '(3) The only materials' corts relating to the procecuures are the pre-operative injections given by the nurse, the anae athetic and the dresanss These are as followe: 47 weeks of the year, a total of 1,880 hours each per annum. Their salaries are as follows: The only other hospital costs (comparable to 'factory costs' in a traditional manufacturing environment) are general overhads. which includes the theater rental costs. and amounts per annum to $200.000 r(5) Surgeon's hours have been correctly identified as the bottleneck resource, The time spent by the surgeon on each procedure is as follows Surgeon's hours have been correctly identified as the bottleneck resource. The time spent by the surge on on each procedure is as follows: \begin{tabular}{|l|l|} \hline The time spent by the surge on on each \\ \hline & \\ \hline Surgcon's hours & \\ \hline Part hours are shown as decimats e R \\ \hline \end{tabular} \begin{tabular}{ccc} A & B & C \\ 0.60 & 0.90 & 1.20 \\ \hline edure hours/proc hours/procedure \end{tabular} Part hours are shown as decimals e g0.24 hours =0.2460 minutes =14.4 minutes Required (a) Calculate the throughput accounting ratio for each procedure. 10 marks (b) Interpret your results. 5 marks (c) Determine the cotimum product (procedure) mix and the maximum profit per year. 10 marks please show working out ASAP
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