Question

You run a hospital with 100 rooms. Fixed daily cost is $977.00 which includes staff salary, property charges, maintenance etc. Variable cost per room is $18.00 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $73.00 per room per day. You sold 30.00 rooms today, how much profit/loss did you

Answer 1

Revenue = 73.00 × 30 = 2,190.00
Variable cost = 18.00 × 30 = 540.00
Total cost = Fixed 977.00 + Variable 540.00 = 1,517.00
Profit = Revenue − Total cost = 2,190.00 − 1,517.00 = 673.00

You made a profit of $673.00 today.