Susquehanna Medical Center operates a general hospital in northeastern Pennsylva
ID: 2493687 • Letter: S
Question
Susquehanna Medical Center operates a general hospital in northeastern Pennsylvania. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Susquehanna charges each separate entity for common services, such as patients’ meals and laundry, and for administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Susquehanna Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x5:
Susquehanna Medical Center operates a general hospital in northeastern Pennsylvania. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Susquehanna charges each separate entity for common services, such as patients’ meals and laundry, and for administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Susquehanna Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x5:
Explanation / Answer
Answer:1
Average patients days=3000000/300=10000 days
variable cost per patient days=1780000/10000=178
Break even point in patients days=Total fixed days/Contribution margin per patient days
=3472600/122
=28464 days
Answer:2
Total fixed costs: Medical center charges 2991000 Supervising nurses 103600 Nurses 210000 Aids 168000 Total fixed costs 3472600 Contribution margin per patient-day: Revenue per patient- day 300 Variable cost per patient-day 178 Contribution margin per patient-day 122Related Questions
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