A hospital is considering a new procedure to be offered at $200 per patient. The cost involved per year are patient meal $10, electricity bill for operating air-condition in theatre room $25, surgical equipment $52,000 consultation fee for Doctor $20, ambulance $30,000, cleaning bed sheet for patient $10, salary of ambulance driver $1000, capital for medicine $15,000, taxes and municipal levy $2,000, and patient admission fee $35. 

What is the break-even quantity for this service? 

If the most pessimistic sales forecast for the proposed service were 1,500 patients, what would be the procedure’s total contribution to profit and overhead per year?

Answer rating: 100% (QA)

WORKINGS The procedure of finding total contribution to profit and overhead per y... View the full answer