Question

You are in charge of several Maternal and Child units at a large teaching hospital. The manager of one of your outpatient facilities (who has not taken Health Finance) gives you the following:

Here’s the report on the income and expenses for the month:

We got $11,200 from insurance, $14,000 from the federal block grant, a $10,000 donation, and made $4,400 from selling T-shirts. Oh, also, the hospital subsidy was $224,000.

We spent $190,000 on salaries and wages and $4000 on overtime, $18,000 on rent, $3600on utilities (they were high this month).

We had to pay for a one-time fire inspection which was $4000. The roof leaked and it was$1800 to get that fixed. I think we came out ahead but I’m not sure.

Characterize what she has told you as income and expenditures and characterize the expenditures as fixed or variable costs. Compute your bottom line for the month.  

INCOME

TOTAL:   

EXPENDITURES      

FIXED	VARIABLE

Answer 1

Ans:

1. Income for the month

Particulars	Amount($)
Insurance	$11,200
Federal block grant	$14,000
Donation	$10,000
Selling t-shirts	$4,400
Hospital Subsidy	$224,000
Total	$263,600

2. Expenditures

Particulars	Fixed	Variable	Amount
Salaries and wages	Fixed		$190,000
Overtime		Variable	$4,000
Rent	Fixed		$18,000
Utilities		Variable	$3,600
One time inspection	Fixed		$4,000
Roof leaked charges		Variable	$1,800
Total			$221,400