Use the information in the table below to answer questions 1 and 2.

Your skilled nursing facility 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 shown below:

Revenues:

Charge Patients (6,000 Patient Days)$750,000

Fixed-Price Patients (20,000 Patient Days)1,800,000

Total Net Revenues2,550,000

Costs:

Fixed Costs$1,170,000

Variable Costs ($45/PD)1,170,000

Total ($90/PD)$2,340,000

Net Income$210,000

1.What is the breakeven in patient days, assuming no profit is required?

2.If volume goes up 10 percent to 28,600 patient days and the payer mix is unchanged, what will net income be?

Use the following information to answer questions 3 through 7.

Standard Cost Profile

Lab Treatment SU #12

Expected Treatments = 1,000

QuantityQuantityUnitVariableAverageAverage

ResourceVariableFixedCostCostFixed CostTotal Cost

Labor0.800.80$16.00$12.80$12.80$25.60

Supplies7.0001.107.7007.70

$20.50$12.80$33.30

Actual Month Cost

Lab Treatment SU #12

Actual Treatments = 1,100

QuantityUnitTotal

ResourceUsedCostCost

Labor1,600$17.00$27,200

Supplies7,5001.007,500

$34,700

For questions 3 through 7, calculate:

3.Efficiency VarianceLabor

4.Efficiency VarianceSupplies

5.Price VarianceLabor

6.Price VarianceSupplies

7.Volume Variance