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Cedars Hospital has average revenue of $180 per patient day.

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Question;Break-even and other CVP relationshipsCedars 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#44043 | Written in 18-Jul-2015

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