Revenue, Cost & CVP Analysis
Not what you're looking for?
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?
Purchase this Solution
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?
Purchase this Solution
Free BrainMass Quizzes
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.