St Marys Hospital owns a prime piece of real estate in the c

St. Mary’s Hospital owns a prime piece of real estate in the center of town. There is a small shopping center on this piece of land. Rents for each store are $4,000 per month. The benefactor of this real estate, in her endowment to St. Mary’s, stated that one of the stores should be operated as a clinic for the poor and be kept open 24 hours a day. St. Mary’s has agreed to these conditions. It hires three nurses monthly at $3,000 each. Furnishings are included in the estimate of the $4,000 rent. Supplies are $10 per patient; there are 800 patients a month, each of whom come in for one visit. What are the costs of operating the clinic?

21,000

23,000

10,000

7,250

38,500

Solution

Cost of operating clinic = Rent + Nurses expense + Supplies cost

= $4,000 + ($3,000 x 3) + ($10 x 800)

= $(4,000 + 9,000 + 8,00)

=$21,000