Calculate the hospital breakeven point

Assignment Help Finance Basics

Reference no: EM131923084

Question: Breakeven Analysis, Textbook healthcare finance 6th edition L Gapenski & K Reiter (2016)

A not-for-profit acute care facility has the following cost structure for inpatient services: Fixed costs Variable cost per inpatient day Charge (revenue) per inpatient day $10,000,000 $200 $1,000 Assuming the hospital managers are expecting a patient load of 15,000 inpatient days next year answer the following:

a. Construct the hospital's base case projected P&L statement.

b. Calculate the hospital's breakeven point.

c. Calculate volume required to obtain a profit of $1,000,000.

d. Calculate volume required to obtain a profit of $500,000.

Reference no: EM131923084

Questions Cloud

Which the market might combat lookism : Give an example of a case in which the market might encourage lookism and an example of a case in which the market might combat lookism.

Coefficient of static friction : You are designing a new flat round track for go-carting. The wheels and the track have a coefficient of static friction of 0.55.

How much would they need to raise : ABC purchases $453,000 worth of goods from its supplier each year on terms of 1/10, net 40 and currently does not take the discount.

Why the market might have acted to eliminate discrimination : Explain why the market might have acted to eliminate discrimination in this example.

Calculate the hospital breakeven point : A not-for-profit acute care facility has the following cost structure for inpatient services: Fixed costs Variable cost per inpatient day Charge (revenue).

Provide an estimate of probable construction cost : Elimination of the requirement to provide an estimate of probable construction cost at the various phases of design;

What is the new temperature : 1) The balloon is lying in the sun, which causes the volume to expand by 6%. What is the new temperature,

Why the given situation represents a trade-off : Your professor has decided that, from now on. Explain why this situation represents a trade-off between equity and efficiency.

What is the project year net cash flow : Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.91 million.

User Account

All Pages