Childrens Hospital predicts variable costs of 70% of total revenue and fixed costs of $42 million per
Question:
Children’s Hospital predicts variable costs of 70% of total revenue and fixed costs of $42 million per year for the coming year.
1. Compute the break-even point expressed in total revenue.
2. Children’s Hospital expects total revenue of $150 million from 200,000 patient-days. Compute expected profit
(a) If costs behave as expected,
(b) If variable costs are 10% greater than predicted.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (12 reviews)
1 The breakeven point in total revenue is fixed cost d...View the full answer
Answered By
Mishark muli
Having any assignments and any other research related work? worry less for I am ready to help you with any task. I am quality oriented and dedicated always to produce good and presentable work for the client once he/she entrusts me with their work. i guarantee also non plagiarized work and well researched work to give you straight As in all your units.Feel free to consult me for any help and you will never regret
4.70+
11+ Reviews
37+ Question Solved
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Question Posted:
Students also viewed these Managerial Accounting questions
-
In what ways are job order and process costing similar? In what ways are they dissimilar? Think of a company/business you are working for (or have worked for). Are the products or services they...
-
Rahmania Company's economic order quantity for an inventory item is 5,000 units and it maintains a safety stock of 500 units. Rahmania receives delivery of inventory item within 18 days of placing...
-
New sys Inc. will generate $30,000 per year for the next five years from a new database system. The system requires an investment of 120,000 today. If the opportunity cost of funds is 6%, is the...
-
The Fisher Apparel Company balance sheet for the year ended 2006 is as follows: a. What is Fisher's investment in current assets? b. Determine Fisher's working capital investment. c. Determine...
-
How does a portfolio model based on product life cycle and the market share development index help a growth business like Groupon.com?
-
Find limit algebraically. lim (8x 7x + 8x + x 4) x-1
-
Based on the building block approach to fixed-income returns, the dominant source of the yield spread for Country XYZ is most likely the: A. term premium. B. credit premium. C. liquidity premium....
-
Robert and Stanley held legal title of record to adjacent tracts of land, each consisting of a number of five acres. Stanley fenced his five acres in 1986, placing his east fence fifteen feet onto...
-
k ces The bank statement reveals an ending balance of $11,727 and includes the following items not yet recorded by Damon: bank service fees of $150, note receivable collected by the bank of $5,000,...
-
Two companies Fatty and Skinny trade in the same market. Their financial statements for the year ended 31 October 2022 are summarised below: Statements of comprehensive income for the year ended 31...
-
In practice, there is often a tendency to simplify approximations of cost-behavior patterns, even though the true underlying behavior is not simple. Choose from the following graphs AH the one that...
-
Super 8, the worlds largest budget hotel chain, was founded in 1972. It now has more than 120,000 rooms in more than 2,000 locations (average is 61 rooms) in the United States and Canada. Suppose a...
-
The following data are for Radial Company: Contributed capital and retained earnings . . . . . . . . . . . . . . . . . . $875,000 Foreign currency translation adjustment . . . . . . . . . . . . . . ....
-
A rich relative has bequeathed you a growing perpetuity. The first payment will occur in one year and will be $2000. Each year after that, on the anniversary of the last payment you will receive a...
-
Why is reinforcement theory a learning theory considered in the context of motivation?
-
After consultation with its employees, Sunshine Company decides to switch the employee pay period to biweekly instead of weekly. Sunshines weekly payroll is $925,000. The annual cost of funds is 12%....
-
Many academic institutions offer a sabbatical policy. Every seven years a professor is given a year free of teaching and other administrative responsibilities at full pay. For a professor earning...
-
Your grandmother has been putting $2000 into a savings account on every birthday since your first (that is, when you turned one). The account pays an interest rate of 4%. How much money will be in...
-
A steam power plant operates on the Rankine cycle according to the specified conditions below. Using stream numbering from Fig. 5.2, for each of the options below, determine: (a) The work output of...
-
Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a). Prepare a contribution margin income statement showing predicted net...
-
Flynn Inc. has two temporary differences at the end of 2015. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Flynns accounting...
-
Simple numbers are used in this problem to highlight the concepts covered in the chapter. Assume that the Perth Woolen Company produces a rug that sells for $20. Perth uses a standard cost system....
-
Service firms trace only direct-labor costs to jobs. All other costs are applied as a percentage of direct-labor cost. Do you agree? Explain.
-
Service firms trace only direct-labor costs to jobs. All other costs are applied as a percentage of direct-labor cost. Do you agree? Explain.
-
1. Create and Adjusted Trial balance with the above information 2. prepare closing entries Bal. Bal. Cash 19,860 Accounts Receivable 16,600 Allow. for Doubtful Accts. Bal. Bal. Bal. Land 393,400...
-
p r e p a r e a 6 0 0 w o r d s presentation regarding data security to your colleagues. The presentation should be accompanied by speaker notes. Examples, citations and references Analyse the...
-
What is program evaluation? What is the importance of data in program evaluation?
Study smarter with the SolutionInn App