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Cedars Hospital_Break-even and other CVP relationships




Question;4. Break-even and other CVP;relationships;Cedars Hospital has average;revenue of $180 per patient day. Variable costs are $45 per patient day, fixed;costs total $4,320,000 per year.;a. How;many patient days does the hospital need to break even?;b.;What level of revenue is needed to earn a target income of $540,000?;c. If;variable costs drop to $36 per patient day, what increase in fixed costs can be;tolerated without changing the break-even point as determined in part (a)?


Paper#37283 | Written in 18-Jul-2015

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