3.3 Allocation of direct expenses on the basis of weighted revenue

3.4 Allocation of total cost to the seat rent

3.5 Calculation of cost per seat per day

For general bed,

Cost per seat per day= [100% - 30%= 70%] = 87.70

3.6.a Calculation of profit per seat in general bed:

                                      Seat rent = 150

                          Less:    Cost per seat = 87.70

                                      Profit per seat = 62.3

So profit from general bed = 62.3

 Percentage of profit from general bed = 41.53%

For VIP bed,

           Cost per seat per day= [100% - 50% = 50%]

                                             = 405

3.6.b Calculation of profit per seat for VIP bed:

                                      Seat rent = 700

                             Less: Cost per seat = 405

Profit per seat = 295

So profit from VIP bed = 295

Percentage of profit from VIP bed = 42.14%

3.7 Total cost allocation in per seat in a view

Calculation of Profit margin

Workings:

Calculation of total expense for out door =

                   Overhead expense + Direct expense

                  = 231233 + 306958

                  =538191

 Calculation of profit margin = 37.71%

Calculation of total expense for operation theater charge =

                                    Overhead expense + Direct expense

                                = 166242 + 170814

                                = 337056

Calculation of profit margin = 32.59%