
I. Hospital Administration
Southwest Hospital has an operating room used only for laser eye surgery. The annual cost of rent, heat and electricity for the operating room and its equipment is $1.08 million, and the annual salaries of the people who staff this room total $1.6 million.
The cost for each surgery is $2395, which includes all medical supplies and drugs and a complimentary bouquet of flowers for each patient. In addition, one-quarter of the patients require dark glasses that the hospital provides at no additional charge but cost $20 per pair. The hospital receives a payment of 56000 for each eye operation performed.
An advertising agency has proposed to the hospitals president that she spend $20.000 per month on television and radio advertising to persuade people that Southwest Hospital is the best place to have laser eye surgery performed. Advertising account executives estimate that such publicity would increase business by 40 operations per month. If they are correct and if this increase is not big enough to affect fixed costs, what impact would this advertising have on the hospitals profits?

Want to see the full answer?
Check out a sample textbook solution
Chapter 1 Solutions
Student Solutions Manual for Harshbarger/Reynolds's Mathematical Applications for the Management, Life, and Social Sciences, 12th
- the larger of two supplementary angles exceeds 7 times the smaller by 4°. Find the measure of the larger angle.arrow_forwardEvaluate the integral using any appropriate algebraic method or trigonometric identity. S- dy 18 √2 (1+y2/3) yarrow_forwardiid B1 Suppose X1, ..., Xn fx(x), where 2 fx(x) = x exp(−x²/0), 0<< (0 otherwise). (a) Find the maximum likelihood estimator of 0. (b) Show that the MLE is an unbiased estimator of 0. (c) Find the MSE of the MLE. Hint: For parts (b) and (c), you may use integration by parts.arrow_forward
- 4. Suppose the demand for a certain item is given by D(p)=-2 p² - 4p+350, where p represents the price of the item in dollars. a) Find the rate of change of demand with respect to price. b) Find and interpret the rate of change of demand when the price is $11.arrow_forward√3-x, x≤3, 2. For f(x) = 1 find each of the following. x > 3, x-3' 1. f(-6) 2. f(3) 3. f(7) 3. Find the domain of each of the following functions.arrow_forward1. Using the definition of the derivative, find f'(x). Then find f'(2), f'(0) and f'(3) when the derivative exists. a) f(x)=5x²-6x-1arrow_forward
- 2. f(x)=√7-x 4. A manufacturer has a monthly fixed cost of $40,000 and a production cost of $8 for each unit produced. The product sells for $12 per unit. 1. What is the cost function? 2. What is the revenue function? 3. Compute the profit corresponding to 12,000 units. 5. A rectangular box is to have a square base and a volume of 20 ft3. The material for the base costs $0.30 per ft2, the material for the sides cost $0.10 per ft2, and the material for the top costs $0.20 per ft2. Letting x denote the length of one side of the base,arrow_forwardSolve using superposition principlearrow_forwardreview problems please help!arrow_forward
- Algebra: Structure And Method, Book 1AlgebraISBN:9780395977224Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. ColePublisher:McDougal LittellCollege Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning


