Brave Heart Hospital showed the following major hospital costs at various levels of activity for CY 2020: Month Hospital Admission Major Hospital Cost(P) February 1,300 P850,000.00 March 8,500 P1,350,000.00 April 1,600 P1,150,000.00 May 1,400 P950,000.00 June 1,200 P800,000.00 July 200 P50,000.00 August 1,650 P1,200,000.00 September 1,550 P1,050,000.00 The breakdown of the major hospital costs in the month of May at 1,400 hospital admission is as follows: Accommodation Expense (Variable) P400,000.00 Utilities (Fixed) P300,000.00 Medicine (Mixed) P250,000.00 Total Overhead Cost P950,000.00 Requirements: Determine how much of major hospital cost for the month of August of P1,200,000.00 consisted of medicine cost Using high-low method, determine the cost function for Medicine Using high-low method, determine the cost function for major hospital cost
Brave Heart Hospital showed the following major hospital costs at various levels of activity for CY 2020: Month Hospital Admission Major Hospital Cost(P) February 1,300 P850,000.00 March 8,500 P1,350,000.00 April 1,600 P1,150,000.00 May 1,400 P950,000.00 June 1,200 P800,000.00 July 200 P50,000.00 August 1,650 P1,200,000.00 September 1,550 P1,050,000.00 The breakdown of the major hospital costs in the month of May at 1,400 hospital admission is as follows: Accommodation Expense (Variable) P400,000.00 Utilities (Fixed) P300,000.00 Medicine (Mixed) P250,000.00 Total Overhead Cost P950,000.00 Requirements: Determine how much of major hospital cost for the month of August of P1,200,000.00 consisted of medicine cost Using high-low method, determine the cost function for Medicine Using high-low method, determine the cost function for major hospital cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Brave Heart Hospital showed the following major hospital costs at various levels of activity for CY 2020:
|
Month |
Hospital Admission |
Major Hospital Cost(P) |
|
February |
1,300 |
P850,000.00 |
|
March |
8,500 |
P1,350,000.00 |
|
April |
1,600 |
P1,150,000.00 |
|
May |
1,400 |
P950,000.00 |
|
June |
1,200 |
P800,000.00 |
|
July |
200 |
P50,000.00 |
|
August |
1,650 |
P1,200,000.00 |
|
September |
1,550 |
P1,050,000.00 |
The breakdown of the major hospital costs in the month of May at 1,400 hospital admission is as follows:
|
Accommodation Expense (Variable) |
P400,000.00 |
|
Utilities (Fixed) |
P300,000.00 |
|
Medicine (Mixed) |
P250,000.00 |
|
Total |
P950,000.00 |
Requirements:
- Determine how much of major hospital cost for the month of August of P1,200,000.00 consisted of medicine cost
- Using high-low method, determine the cost function for Medicine
- Using high-low method, determine the cost function for major hospital cost
What would be the total major hospital cost if hospital admission is at 2,000?
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