Question

You are an administrator for the Emergency Department. The Routine Care Department performs two services, Short Service and Long Service. These services both constitute three activities:Check-In, Care, and Check-Out. Check-In costs $30 per visit, Care costs $5 per minute, and Check-Out costs $40 per visit. Each visit for Simple Service takes 10 minutes of Care, and each visit for Long Service takes 20 minutes of Care. Last year, there were 1000 visits for Short Service and 2000 visits for Long Service. What was the total cost of the Emergency Department last year?

		Answer Choices: $225,000
		$360,000
		$460,000
		$170

Answer 1

Total visits (both short service and long service) last year = 1000+2000 = 3000

Check in cost per visit = $30

Total Check in cost last year (A)= 3000 * 30 = $90,000

Check out cost per visit = $40

otal Check out cost last year (B)= 3000 * 40 = $120,000

Care costs per minute = $5

Time per Simple Service Care = 10 minutes

Total time spend for Simple Service Care last year = 1000 * 10 = 10,000 minutes

Time per long Service Care = 20 minutes

Total time spend for long Service Care last year = 2000 * 20 = 40,000 minutes

Total Care cost last year (C) = (10,000 + 40,000) * 5

= $250,000

Total cost of the Emergency Department last year = A + B + C

=90,000 + 120,000 + 250,000

= $460,000

Each visit for Long Service takes 20 minutes of Care