Question: The information below applies to problems 4 and 5. Your nursing home defines output as a patient day. Its present volume is 26,000 patient days.
The information below applies to problems 4 and 5. Your nursing home defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00 Present revenues and costs are presented below: Revenues Charge Patients (6,000 Patient Days) Fixed-Price Patients (20,000 Patient Days) $ 750,000 $2,550,000 $1,170,000 2.340,000 Total Net Revenues Costs: Fixed Costs Variable Costs ($45/PD) Total ($90/PD) Net Income S 210,000 Using this information, answer the following two questions: 4. What is the breakeven in patient days for this nursing home, assuming no profit is required 5. If volume goes up 10% to 28,600 patient days and payer mix is unchanged, what will net income be
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