$10,000,000 200 1,000 Fixed costs Variable cost per inpatient day Charge (revenu
ID: 2554497 • Letter: #
Question
$10,000,000 200 1,000 Fixed costs Variable cost per inpatient day Charge (revenue) per inpatient day The hospital expects to have a patient load of 15,000 inpatient next year a. Construct the hospital's base case projected P&L; statement. b. What is the hospital's breakeven point? c. What volume is required to provide a profit of $1,000,000 profit of $500,000? ow assume that 20 percent of the hospital's inpatient das from a managed care plan that wants a 25 percent charges. Should the hospital agree to the discount prop 5.5 You are considering starting a walk-in clinic.Y projections for the first year of operations are as follows: Revenues (10,000 visits AI 400 000Explanation / Answer
a) Projected Profit and loss statement
b) Break even point = 10000000/800 = 12500 inpatient
c) Required volume = (10000000+1000000)/800 = 13750 inpatient
Requied volume = (10000000+500000)/800 = 13125 inpatient
Sales (15000*1000) 15000000 Variable cost (15000*200) 3000000 Contribution margin 12000000 Fixed cost 10000000 Net operating income 2000000Related Questions
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