A hospital receives $1,000,000 monthly in funding from various sources. Annual fixed costs are projected to be
Fantastic news! We've Found the answer you've been seeking!
Question:
A hospital receives $1,000,000 monthly in funding from various sources. Annual fixed costs are projected to be $5,000,000 and the variable cost per patient, across all departments is projected to be $534.80. Last year they treated 11,500 patients. The hospital expects a 5% increase in patients this year. A governing bylaw requires that the hospital be run as a non-profit organization. What is the maximum number of patients the hospital can expect to be able to treat assuming the operating income is zero?
A) 11,500
B) 12,079
C) 13,000
D) more than 13,000
E) CVP analysis is not relevant for non-profit organizations.
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0073527079
5th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date: