Good afternoon sir,
I’m doing part c on stow health centre question, I’m a bit confused as to how they got the contribution?
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Stow health centre - part c
5y ago#1Where on earth did you find this question? It is incredibly old :-) :-)
The expected variable cost per day is (0.1 x 95) + (0.6 x 85) + (0.3 x 70) = $81.50.
If the client fee is $180 per day, then the contribution is 180 - 81.50 = $98.50 per day.
So the total contribution per year is 90% (occupancy) x 50 (clients) x 350 (days) x $98.50 (contribution per day) = $1,551,375
It is the same workings for each of the others :-)
Thanks so much for this sir.
Just out of curiosity are the old questions not worth doing? I found these questions at the back of the BPP study text…
5y ago#3They are certainly worth doing.
However by far the most important book for question practice is the Revision Kit because it is full of past exam and other exam standard questions, in the current exam format.
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