Clear Lake Nursing Home defines outputs as a patient day. Its present volume is 26,000 patient...

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Clear Lake Nursing Home defines outputs 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: Clear Lake Nursing Home Present Revenues and Costs Revenues: 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: 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. 1. What is the breakeven in patient days for this nursing home, assuming no profit is required? 2. If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be? Clear Lake Nursing Home defines outputs 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: Clear Lake Nursing Home Present Revenues and Costs Revenues: 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: 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. 1. What is the breakeven in patient days for this nursing home, assuming no profit is required? 2. If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be?

Answer rating: 100% (QA)

1 Per Day 6000 Per Day 20000 Revenue 125 750000 90 1800000 ... View the full answer