Accounting breakeven point quantity

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Reference no: EM13829213

In this assessment you will use the data provided below and conduct a profit (CVP) analysis. You will be graded based on your understanding of profit (CVP) analysis, the accuracy of your calculations, the validity of you conclusions and your ability to clearly communicate your analysis. To complete this assignment, follow these steps.

  1. Assume the following information about cost and charges for a hospital in 2014:

Fixed Costs = $10,000,000

Variable cost per inpatient Day = $200

Charge Per Inpatient Day = $1,000.

Initial volume of 15,000 inpatient days

  1. Estimate the: a) accounting breakeven point quantity (in terms of inpatient days) and breakeven dollar amount and b) the economic breakeven point quantity (inpatient days) and dollar amount. 
  2. Explain the contribution margin.

Reference no: EM13829213

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