A hospital has an operating room used only for eye surgery. The annual cost of heat, rent, and electricity for the operating room and its equipment is $190,000 and the annual salaries for the people who staff this room total $265,000. Each surgery performed requires the use of $390 worth of medical supplies and drugs. Evry patient receives a $15 bouquet the day after surgery. Also, one-half of the patients receive a $20 pair of dark glassses.

Now here are the questions:

1. Let x be the number of patients having eye surgery in a year. Write cost as a function of x equation.

2. The hospital receives $1100 for each eye operation performed. Write the revenue function.

3. How many eye operations must the hospital perform each year in order to break even?


4. Currently, the hospital averages 840 eye operatios per year. There is a medical machine that would reduce by $60 per patient the amount of medical supplies needed. Should the hospital lease this machine if it can be leased for $60,000 annually?
hint: calculate the profit with and without this machine then compare profits.

1. No idea the format, but 840 surgeries times $415 in costs = $348,600
(costs $390 + $15 + $10 (half the cost of 1 pair of glasses)

Net income per surgery is $685

2. gross income 840 * 1100 = $924,000
net income $685 * 1100 = $753,500

3. Fixed costs $190,000 + $265,000 = $ $455,000
Per event net income $1100-$415 = $685
$455,000 / $685 profit = 664.23 surgeries or 665

4. The machine is a dud deal. It costs $60,000 per year but only reduces costs $50,400 on 840 surgeries.