# revenue calculation?

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• mufakir
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http://www.accaglobal.com/content/dam/acca/global/pdf/p5_2006_dec_pilot_q_and_a.pdf

can anyone tell me how the revenue in the first question was calculated? i’m drawing a blank

angryhamtaro
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The maximum capacity of each hospital is 365 days / 3 average stay period x 8 patients x 15 wards = 14,600 patients.

On a flexed budgeted basis, the hospital only utilized 80% of its capacity, 14,600 x 80% = 11,680.

We know that out of 11,680 patients, we have 3,504 in ear, 3,505 in nose, and 4,672 in throat. Out of each operation type, 50% of the patients are government funded. You can now work methodically by calculating the revenue for private patients and gov patients in each operation one by one.

On an actual basis, keeping to 80% capacity, our % of government patients and proportion of operation types has changed. Hopefully this gives you the motivation to know what to do next.

mufakir
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thank you so much! much appreciated. i also learnt that one should read the entire question. I didn’t read the full question so missed out on the whole 365 days thing but thank you once again.

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