St. Charles Hospital, located in an upper-income neighborhood of a large city, recently received a restored mansion as a gift from an appreciative patient. The board of directors decided to remodel the mansion and use it as recuperative quarters for patients willing to pay a premium for luxurious accommodations. The cost to the hospital of using the mansion includes

Question

Quizplus · Accepted Answer

The hospital may not have paid for the mansion initially, but they are now incurring costs for its upkeep. This includes the cost of taxes, insurance, utilities, maintenance, and any other expenses associated with the mansion. Additionally, since the mansion could be rented or sold, the hospital is losing potential revenue by using it as recuperative quarters instead. Therefore, both options B and C are correct.

St Charles Hospital, Located in an Upper-Income Neighborhood of a Large