What is the actual revenue per night under the new conditions? (Le: if price cha

Question

What is the actual revenue per night under the new conditions? (Le: if price changes are made.) 4. There are 42 multiple choice questions. Answer all of them using the attached answer sheet. There is only 1 correct answer for any given question a. 700,000 riyals. b.1,000,000 riyals c. 800,000 riyals. d. 1,200,000 riyals e. 720,000 riyals Use the Doha clinic and hospital has 1000 beds. It currently does not accept any insurance plans and thus all of the patients have to pay by cash 1000 riyals per night. The company has 720 beds on average occupled based on this price. The company however is considering a new change in prices: 800 riyals if the bill is paid by an insurance company and 1000 if it is paid by cash. It is anticipated that under the new set of prices that per night 835 beds will be occupied where 675 of these beds will be charged to the insurance companies and 160 by cash. 5. What is the potential revenue per night under the new conditions? (i.e.: if price changes are made.) a. 700,000 riyals. b 1,000,000 riyals. c 800,000 riyals. d. 1,200,000 riyals. e. 720,000 riyals 6. What is the yield per night under the new conditions? (i.e.: If price changes are made.) a. 72 What is the actual revenue per night under the current conditions? (i.e.: with no changes in prices.) 1. C. .67 d. .58 a. 700,000 riyals. b. 1,000,000 riyals. c. 800,000 riyals. d. 1,200,000 riyals. e. 720,000 riyals . Would you recommend changing the prices? Yes, I would recommend since the yield has improved. Yes, I would recommend since the yield has not improved. No, I would not recommend since the yield has improved. No,Iwould not recommend sincethe yield has not improved The change does not make a difference a. b. What is the potential revenue per night under the current conditions? (i.e.: with no changes in prices.) c. 2. d. a. 700,000 riyals. b. 1,000,000 riyals c. 800,000 riyals. e. d. 1,200,000 riyals e. 720,000 riyals What is the yield per night under the current conditions? (i.e: with no changes in prices.) 3. a. .72 c. .67 d. .58

Explanation / Answer

= 1000 Riyals per night per bed x 720 beds

= 720,000 riyals

= 1000 Riyals per night per bed x Maximum 1000 beds

= 1,000,000Riyals

= Actual occupancy of beds/ Maximum number of beds

= 720/1000

= 0.72

= 675 beds ( charged to insurance company ) x 800 riyals/ bed + 160 beds ( for cash payment) x 1000 Riyals/ bed

=540,000 riyals + 160,000 riyals

= 700,000 Riyals

= 1000 riyals/bed ( maximum revenue chargeable per bed ) x 1000 beds ( maximum number of beds )

= 1,000,000

= Actual revenue / Potential revenue

= 700,000. 1,000000

= 0.70

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