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Transcription of this question: 2.Aravind Eye CareAravind Eye Care is the world’s largest provider Of eye surgery. Founded in 1976 in India byDr Govindappa Venkataswamy, the non-profit organization can perform 250000 operationsper year. At Aravind Eye Care, only 40% Of the patients pay for the operation, which coststhem USS60_ The Other Of the patients, who would otherwise not be able to afford theoperation, do not pay.Aravind Eye Care has transformed the process Of eye surgery in developing economies.Expensive medical equipment has been purchased but is used 24 hours a day in order to lowerthe average cost for each operation. In Åravind Eye Care hospitals, surgeons perform onlythe eye operation itself whereas in Other hospitals, doctors also provide care before and afterthe operation. At the Aravind Eye Care hospitals, each doctor can perform 4000 eye operationsper year, whereas Other eye surgeons in India average 400.With these economies Of scale, in 2007 Aravind Eye Care performed 100000 operations forfee-paying patients. For these patients:• the price charged per operation was USS60• the variable cost per operation was USS20• fixed costs including overheads wereIn recognition Of their extraordinary efforts to improve health in developing countries,Aravind Eye Care received the Bill Melinda Gates Foundation award in 2007(a)(b)(c)(d)Define the following terms:(i) non-profit organization(ii) overheads.Calculate for fee-paying patients in 2007 at Aravind Eye Care (Show allyour working)(i) the contribution to fixed costs Of each fee-paying patient(ii) the break-even quantity(iii) the margin Of safety.Prepare a fully labelled break-even chart for Aravind Eye Care in 2007.With reference to appropriate content theory, examine two factors that couldinfluence the motivation Of doctors at Aravind Eye Care.[2 marks/[2 marks/[2 marks/[2 marks/[2 marks][5 marks][5 marks]

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