Making cost-related operations management decisions

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Reference no: EM132176815

C&A nursing home would like your help in making cost-related operations management decisions. Each room has an income earning potential of $350 per month at the Lexington, KY location. Variable costs are food, materials and supplies, plus nursing care. Food, materials and supplies average $150 per month per patient. Nursing care averages $5 per day per patient. Fixed costs such as mortgage, utilities, and equipment are $5000 per month. The home has 200 rooms. Assume 30 days in a month. What will C&A s profit be at 80% occupancy?

Reference no: EM132176815

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