Question: and show work so that i can understand please be honest thanks Shady Rest Nursing Home has 100 private pay residents. The administrator is concerned
and show work so that i can understand please be honest thanks Shady Rest Nursing Home has 100 private pay residents. The administrator is concerned about balancing the ratio its private pay to non-private pay patients. Non-private pay sources reimburse an average of $100 per day whereas private pay residents pay average 100 percent of full daily charges. The administrator estimates that variable cost per resident per day is $25 for supplies, food, and contracted services and annual fixed costs are $4,562,500. If 25 percent of the residents are non-private pay, what will shady Rest charge the private pay patients in order to break even
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
