Bill Watts awoke with intense pain in his side. After a 911 call, he was transported to the emergency room at Lodi Community Hospital, where he underwent surgery for a ruptured appendix. The surgical procedure required 30 minutes. His hospital stay lasted three days, one of which was classified as acuity level 2.
The following information has been retrieved from Lodi Community Hospital's cost information system.

Nursing:
Acuity level 1 $350 per day
Acuity level 2 $400 per day

Food services $65 per day
Operating room $450 per half hour
Laundry $35 per day
Emergency room admission $250 per admission
Emergency medical transportation $300

Calculate the cost incurred by Lodi Community Hospital to care for Bill.
Assume Lodi Community Hospital invoices clients on a cost-plus basis. If the markup percentage is 20%, what is the amount of Bill's invoice?

Solution Summary

Calculates the cost incurred by Lodi Community Hospital to care for Bill.

The cost function for a business is shown in the table below (where Q is the level of output):
Q (units) Cost
0 8
1 24
2 38
3 44
4 51
5 52
6 59
7 65
8 79
9 95
10 125
Calculate the (a) marginal cost and (b) the average total cost schedules.

1) The first unit required 9800 hours to manufacture. The company expects to experience an 85% unit learning curve. Estimate the cost of the 20th unit. Round intermediate calculations to 4 decimal places.
a) 5408 hours
b) 4855 hours
c) 23112 hours
d) 4155 hours
2) Given the following information, determine the equa

You are estimating the cost ($K) of optical sensors based on the power output of the sensor. Using the preliminary calculations from a data set of 8 sensors, determine the equation of the line. (Round your intermediate calculations to 3 decimal places)
ΣY = 2575 ΣX=680 ΣXY=241400 ΣX2=62600
A) Cost = 6.763 +

Calculate the following short-run costs for a firm:
Q = 0, TC = 20: what is the fixed cost?
Q = 1, MC = 20: what is the total cost when Q = 1?
Q = 2, AVC = 15: what is average total cost when Q = 2?
Q = 3, TC = 77: what is marginal cost when Q = 3?
Q = 4, TVC = 76: what is marginal cost when Q = 4?

A firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 , and the marginal product of the 50th worker is 75. The wage rate is $80, and the total cost of the fixed input is $500.
a. Calculate the average variable cost with calculations.
b. Calculate the Marginal cost with calculat

Total Output Cost TFC TVC AFC AVC ATC MC
0 $20
10 $40
20 $60
30 $90
40 $120
50 $180
60 280
1. Use the above table to answer the questions listed below.
a. Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total co

MZC Ltd draws $2,000,000 in 180-day BABs at the current market rate of 7.0% p.a. What proceeds will the firm receive from discounting the bill if the bank charges an acceptance fee of 1.5%? What is the firm's annualized cost of funds taking the acceptance fee into account? With all calculations.

I need some help getting started with the following:
A) How does the cost of capital calculations impact on investment decisions?
B) While most financial professionals are very comfortable with the textbook calculation, there are a few gray areas worthy of note because of their potential impact on capital budgeting decisio

Zingle's buys and then resells a single product as its primary business activity. Following is information concerning the Zingle's inventory activity for the product during August 2004:
August 1: 210 units on hand @5.10 per unit
August 5: Sold 80 units
August 7: Purchased 160 units @5.25 per unit
August 11: Purchased 110 uni

The maker of UCarts is purchasing a new stamping machine. Two options are being considered, Rooney and Blair. The sales forecast for UCarts is 8,000 units for next year. If purchased, the Rooney will increase plant fixed costs by $20,000 and reduce variable costs by $5.60 per unit. The Blair would increase fixed costs by $5,000