5.7 B. C. &D

I'm not sure if I calculated the inpatient daus and P&L statement correct. See work below.

7 General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: The hospital expects to have a patient load of 15,000 inpatient days next year. a. Construct the hospital's base case projected P\&L statement. b. What is the hospital's breakeven point (in number of inpatient days)? c. What volume is required to provide a profit of $1,000,000 ? A profit of $500,000? d. Now, assume that 20 percent of the hospital's inpatient days come from a managed care plan that requests a 25 percent discount from charges. Should the hospital agree to the discount proposal? Assume that the managed care plan will contract with a different provider if the hospital does not agree to the discount (i.e., the hospital will lose the inpatient days associated with the contract). 5.7 A. PAl Stairment 1B. Bieak even (Contributim margin xvolume) - fixed cost=0 800volume10,0001000=0800volume=10,000,000volume=80010,000,000voluare=12,500inpatientDivs 5,7 C. Vilum for probit of 1,000, 000? (Conmbutim magin x voluer) - fixed cost =1,000,000 S00 valua -10 otbme 110001000 800 volume = hemorora +10,000,1000 S00 0 volene = theph, ise Volinz =800H10001000 voleme =13,75 implteiti Dnys Profit of 50,0,000 ? (Contribuhm margn yolund) - Fixed Cost =500,000 S0i) x volume 10,0001000=500,000 80 xyoluiz =10,500,000 volume =80010,500,000 Volume =13,125 impatient Days P+LSthitement 750 D. MANrecd CARE (7503000)=2,250,000 Dow DTER ReveIUeg (10002,000)=12,000,000 Total Verialk cost (200151000)=3,0001000 Total Con tribution marein (2503101)+(80012,000)=10,350,000 Fixed Cost Pritit =$750,003$10,000,000 Noi the hospital should Not agree to the managed care contmct beare the profit decreaxy from $2,000,000 to $350,000. If they loge the inpatient DAyS. they Slowld tave the contrent to avond a resatice balance