1. The hospital is utilizing the beds to the optimal level.

2.

mo
n
mo
n
tue
we
d

tu
e

30 30
30

we
d
30
30

30

30

30

thu
fri
sat
sun
tot
al
3.

will

30

thu
fri
sat
sun
tot
al

fr
i

3
0
3
0
3
0

sa su
t
n

3
0
3
0

30 30
60 90

mo
n
mo
n
tue
we
d

th
u

45

tu
e
45
45

30
90

90

9
0

6
0

we
d

th
u

fr
i

sa su
t
n

45
45

45

45

45
45

45
90

45
13
5

30

4
5
4
5

60

4
5

45
13
5

13
5

9
0

It would increase the

utilization of beds on Friday,
Saturday and Sunday.
Yes, It is sufficient for the
additional patients.

4
5

45

The hospital can perform 40

operations per day, hence it
not run out of rooms.
The hospital can perform an
additional 10 operations
It will utilize 88.88% of the

room capacity.
The hospital cannot perform the optimal 45 operations because of
having only 5
Operating rooms
4.

The cost of increasing the bed capacity would be 45*100,000 = $

4,500,000
Assuming 40 operations per day, 5 days a week and 4 weeks in a
month, in a year the

Hospital would make 40*5*4*12*1300 = $ 12,480,000

And the pay the Surgeons for 9600 operations = $ 5,760,000
That equals a profit of $12,480,000 - $5,760,000 = $6,720,000 per
year
It would justify the the decision to expand with in year only.