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CHAPTER 5 HOMEWORK - COSTING AND PROFIT ANALYSIS Homework 2.1, Chapter 5 Using the data below, answering the following questions: Fixed costs $12,500,000 Variable cost/day $350 Charge (rev)/day $1,200 Inpatient days 16,000 a. Construct the hospital's base case projected P&L statement b. What is the hospital's breakeven point (volume / patient days needed to breakeven)? c. What is the economic breakeven (volume required) to provide a profit of $1,000,000? d. What is the total contribution margin if volume decreases by 20%? e. Based on the scenario in d., if fixed costs remain the same, what is the hospital's profit or loss