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Questions

• The number of patient days needed to cover total costs is
• If the Pediatrics Department rented an additional 20 beds and all other factors remain the same as in the past year, what would be the increase in revenue?
• Continuing to consider the 20 additional rented beds, the increase in total variable cost applied per patient day is
• What is the increased fixed cost applied for bed capacity, given the increased number of beds?

Transcribed Image Text:

Calamba Hospital operates a general hospital but rents space and beds to separate entities for specialized treatment such as pediatrics, maternity, psychiatric, etc. Calamba charges each separate entity for common services to its patients like meals and laundry and for all administrative services such as billings, collections, etc. All uncollectible accounts are charged directly to the entity. Space and bed rentals are fixed for the year. For the entire year ended June 30, the Pediatrics Department at Calamba Hospital charged each patient an average of P65 per day, had a capacity of 60 beds, operated 24 hours per day for 365 days, and had revenue of P1,138,800. Expenses charged by the hospital to the Pediatrics Department for the year ended June 30 were: Dietary Janitorial Laundry Lab, other than direct charges to patients Pharmacy Repairs and maintenance General administrative services Basis of Allocation Patient Days P 42,952 28,000 47,800 33,800 5,200 Bed Capacity P 12,800 7,140 131,760 Calamba Hospital operates a general hospital but rents space and beds to separate entities for specialized treatment such as pediatrics, maternity, psychiatric, etc. Calamba charges each separate entity for common services to its patients like meals and laundry and for all administrative services such as billings, collections, etc. All uncollectible accounts are charged directly to the entity. Space and bed rentals are fixed for the year. For the entire year ended June 30, the Pediatrics Department at Calamba Hospital charged each patient an average of P65 per day, had a capacity of 60 beds, operated 24 hours per day for 365 days, and had revenue of P1,138,800. Expenses charged by the hospital to the Pediatrics Department for the year ended June 30 were: Dietary Janitorial Laundry Lab, other than direct charges to patients Pharmacy Repairs and maintenance General administrative services Basis of Allocation Patient Days P 42,952 28,000 47,800 33,800 5,200 Bed Capacity P 12,800 7,140 131,760

Answer rating: 100% (QA)

To answer the questions lets calculate the required values based on the given information 1 The number of patient days needed to cover total costs We ... View the full answer