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Your nursing home defines output as a patient day.

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1. Your nursing home defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00. Present revenues and costs are presented below;Revenues Amount;Charge Patients (6,000 Patient Days) $750,000;Fixed-Price Patients (20,000 Patient Days) $1,800,000;Total Net Revenues $2,550,000;Costs Amount;Fixed Costs $1,170,000;Variable Costs ($45/PD) $1,170,000;Total ($90/PD) $2,340,000;Net Income $210,000;Using this information, answer the following two questions;a. What is the break-even in patient days for this nursing home, assuming no profit is required?;b. If volume goes up 10% to 28,600 patient days, and payer mix is unchanged, what will net income be?

 

Paper#32787 | Written in 18-Jul-2015

Price : $25
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