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A nursing unit has 10 beds, but 2 beds are vacant because of insufficient numbers of nursing staff. The daily cost of providing nursing services to the 8 filled beds is $2000. The unit manager increases the number of staff, and this allows all 10 beds to be filled. As a result, the daily cost of providing nursing services to the 10 filled beds increases to $2400. Because of a change in staff mix when new nursing staff members are added, nursing hours per patient day (HPPD) increases from 4.0 to 4.5. Measures show no change in the quality of patient care. Problem 1: How does the new staffing pattern productivity compare with productivity in the original staffing plan on a unit cost ($ per patient day) basis?
Clark, Bruce, and Diana, unrelated individuals, own all of the stock in Trinity Corporation (E & P of $1.2 million) as follows: Clark, 1,500 shares; Bruce, 300 shares; and Diana, 200 shares. Trinity redeems 900 of Clark’s shares (basis of $210,000 in..
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