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kiruha [24]
2 years ago
11

Memorial Hospital CEO conducts performance reviews of the hospital's departments and discovered that the average cost of deliver

ies ($5,000) was above their average revenue, and that the hospital was losing $700 on each delivery. From the information on how much the hospital is losing on deliveries, what is the change in profit for each extra delivery
Business
1 answer:
lora16 [44]2 years ago
4 0

Answer:

Memorial Hospital

From the information on how much the hospital is losing on deliveries, the change in profit for each extra delivery is:

= 16.3%.

Explanation:

a) Data and Calculations:

Average cost of deliveries = $5,000

Average revenue per delivery = $4,300 ($5,000 - $700)

Loss on each delivery = $700

The change in profit for each extra delivery is

= 16.3% ($700/$4,300 * 100)

b) The implication of the above information is that the hospital is losing 16.3% each time it performs a delivery because it cost it $5,000 while it can only receive $4,300 from each patient delivered.

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