ANSWER OF Q4.

Expansion costs
Additional beds
Cost per additional beds
Total expansion cost

Revenue/cost per surgery

Revenue per operation
Surgeon cost per operation
Additional revenue per operation
Additional operations

Financial Analysis
Incremental revenue
Payback in weeks

For this analysis we are using 75 as the number of additional operations per week because 45
is the maximum no. of operations that could be done per day without running out of beds.
however, using all of the same inputs except for the additional beds, only 40 operations could
be done. ( 5 operating rooms * 8 hrs per day = 40 hrs, each surgery takes an hour, so that me
40 operations can be done per day without changing the hours of surgical staff.) In order to
achieve 75 additional surgeries per week, there will be severe changes, such as expanding
the no. of operating rooms or extending the hrs during which operations are performed.
 This is the financial analysis for 50% bed expansion

45
$1,00,000
$4,500,000

$1,300
$600
$700
75

$52,500
85.7

mber of additional operations per week because 45

uld be done per day without running out of beds.
pt for the additional beds, only 40 operations could
ay = 40 hrs, each surgery takes an hour, so that means
t changing the hours of surgical staff.) In order to
there will be severe changes, such as expanding
he hrs during which operations are performed.