The Megabuck Hospital Corp. is to build a state-subsidized nursing home catering

Question

The Megabuck Hospital Corp. is to build a state-subsidized nursing home catering to homeless patients as well as high-income patients. State regulations require that every subsidized nursing home must house a minimum of 760 homeless patients and no more than 900 high-income patients in order to qualify for state subsidies. The overall capacity of the hospital is to be 2,100 patients. The board of directors, under pressure from a neighborhood group, insists that the number of homeless patients should not exceed twice the number of high-income patients. Due to the state subsidy, the hospital will make an average profit of $9,500 per month for every homeless patient it houses, whereas the profit per high-income patient is estimated at $8,000 per month. How many of each type of patient should it house in order to maximize profit?

Explanation / Answer

If no of high income patients kept at                  700 Then homeless patients will be             1,400 It serves both the conditions of   state subsidy and neighborhood group. So maximum profit will be   Type of patients Nos Profit High Income Patients                700             5,600,000 Homeless pataients             1,400          13,300,000             2,100          18,900,000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.