Question

Saline IV fluid bags cost 64.20 for 24, 1000 ml bags from one supplier. A new supplier

sells 500 ml bags for 2 each. The hospital uses about 10,000, 1000 ml bags each month.
Nurses report that about half of the bags are more than half full when they are discarded. If
you are going to use only one supplier, which size bag provides the best deal, and how much
will you save each month? Compare the cost of the new supplier to the current one.
A. The 1000 ml bags, over 3000
B. The 500 ml bags, over 3000
C. The 1000 ml bags, over 6000
D. The 500 ml bags, over 6000

Answer 1

The D. 500 ml saline IV bags from the new supplier provide the best deal with a monthly saving of over $6,000 compared to the current supplier's 1000 ml bags.

Step-by-step explanation:

The question requires us to compare the cost-effectiveness of two sizes of saline IV fluid bags from different suppliers and calculate the potential monthly savings. First, we need to determine the cost per 1000 ml for each supplier. The current supplier charges $64.20 for 24 bags of 1000 ml, meaning each 1000 ml bag costs $64.20 / 24 = $2.675. The new supplier offers 500 ml bags for $2.00 each, so to get 1000 ml, it would cost $4.00 since two 500 ml bags would be needed.

Given that the hospital uses about 10,000, 1000 ml bags each month and that half of the bags are discarded when more than half full, switching to smaller bags could result in less wastage. If we assume halving the bag size reduces waste to a negligible amount, the hospital could potentially just purchase what is needed, meaning 10,000 x 500 ml bags, resulting in a cost of 10,000 x $2.00 = $20,000 monthly.

Comparing this to the current supplier, the hospital is spending $64.20 / 24 x 10,000 = $26,750 for the 1000 ml bags. The monthly savings by switching to the new supplier's 500 ml bags would be $26,750 - $20,000 = $6,750.

Therefore, the 500 ml bags provide the best deal, with monthly savings of over $6,000, making option D the correct answer.