Mercy hospital is a privat hospital that serves an aging population the hospit

Mercy hospital is a privat hospital that serves an aging population the hospital administrator believes that insurance companies and medicare will move to
fixed paymets for spicific procedure which will put increasing pressure on hospital to control cost acoomon procedure performed at hospital is hipreplacement
surgery the hospital administrator has asked the hospital CFO to repare information on the current cost of hip replacement at hospiatl so they can explore the
finanicial viablity of thisand other procedure the following information gathered by CFO

expected change reimbursment sales price $ 25000

required return oncharges return on sales 30%

current average cost per hip replacement $ 22000

plae answer all

A are hip replacement surgery finanicial viable

B gross function team analyse the hospital hip replacement and estimated through better schedualing the hospital could reduce hospital stay from average of
nine day to five days with no loss of quality of care in fact because elderly patients would be hospitalized for shorter period they would be less likly to
cotract respiratory infection improvement in this procedure can result in reduction of the average cost of a hip replacement by $ 8000 if this a ccomplished
what is the expected return on charges for hip replacemet