req 2. part B

Question Help Community Hospital predicts variable costs of 50% of total revenue and foced costs of S41 million per year for the coming year. Requirements 1. Compute the break-even point expressed in total revenue. 2. Community Hospital expects total revenue of S100 million from 150,000 patient-days. Compute expected profit (a) if costs behave as expected, and (b) if variable costs are 20% greater than predicted Determine the formula and then enter the amounts to calculate the break-even point in total revenue (Enter dollar amounts in millions and any percentages or ratios in decimal form to two decimal places, XX) Total fixed costs 1 Contribution margin ratio Break-even in total revenue 5 41 0.5 = $ 82 million Requirement 2. Community Hospital expects total revenue of $100 million from 150,000 patient-days. Compute expected profit (a) if costs behave as expected, and (b) if variable costs are 20% greater than predicted. Begin by determining the formula to calculate net profit (loss), then calculate how much net profit will be generated (a) if costs behave as expected, and (b) variable costs are 20% greater than predicted. (Enter dollar amounts to the nearest tenth of a million. Use parentheses or a minus sign for net losses.) (b) Total revenue 100 Variable costs 50 Contribution margin 50 Fixed costs 41 $ $ Net profit (loss) 9