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    Revenue, Cost & CVP Analysis

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    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
    Amount

    Charge Patients (6,000 Patient Days) $750,000
    Fixed-Price Patients (20,000 Patient Days) $1,800,000
    Total Net Revenues $2,550,000

    Costs
    Amount

    Fixed Costs $1,170,000
    Variable Costs ($45/PD) $1,170,000
    Total ($90/PD) $2,340,000

    Net Income $210,000

    Using this information, answer the following two questions:

    What is the break-even in patient days for this nursing home, assuming no profit is required?
    If volume goes up 10% to 28,600 patient days, and payer mix is unchanged, what will net income be?

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    https://brainmass.com/business/cost-volume-profit-analysis/revenue-cost-cvp-analysis-355429

    Solution Summary

    The solution find what is the break-even in patient days for this nursing home, assuming no profit is required and
    If volume goes up 10% to 28,600 patient days, and payer mix is unchanged, what will net income be?

    $2.19

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