Question: Using the data of Question 10 and assuming that the nursing home charges $100 per day, what would be the nursing homes required volume (in
Using the data of Question 10 and assuming that the nursing home charges $100 per day, what would be the nursing homes required volume (in patient days) in order to make $150,000 profit? Question # 10 (20 points) A dermatology clinic expects to contract with an HMO for an estimated 80,000 enrollees. The HMO expects 1 in 4 of its enrolled members to use the dermatology services per month. At the end of the year, the dermatology clinics business manager looked at her monthly figures and saw that the number of enrolled members had increased by 5% over the budgeted amount, and that 1 in 3 of the total HMO members had used the dermatology services per month. Net monthly revenues of the dermatology clinic were budgeted at $260,000 but were actually $450,000. Monthly expenses for the clinic were budgeted at $200,000 but were actually $270,000.
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