Determining charges for private pay residents shady grove

Reference no: EM13569816

Determining charges for private pay residents. Shady Grove Nursing Home has 220 private pay residents. The administrator is concerned about balancing the ratio of its private pay to non-private pay patients. Non-private pay sources reimburse an average of $125 per day whereas private pay residents pay on average 90 percent of full daily charges. The administrator estimates that variable cost per resident per day is $45 for supplies, food, and contracted services, and annual fixed costs are $6,000,000.

• What is the daily contribution margin of each non-private pay resident?

• If 25 percent of the residents are non-private pay, what will Shady Rest charge the private pay patients to break even?

• What if non-private pay payors cover 50 percent of the residents?

• The owner of Shady Rest Home insists that the facility earn $80,000 in annual profits. How much must the administrator raise the per day charge for the private insured residents if 25 percent of the residents are covered by non-private pay payors?

Reference no: EM13569816

Questions Cloud

Company a and company b are identical except that company : company a and company b are identical except that company as costs are mostly variable whereas company bs costs are

Rosen company purchased 35000 shares of common stock of : rosen company purchased 35000 shares of common stock of corporation as a long-term investment for 800000. during the

While state and local governments are encouraged to : while state and local governments are encouraged to prepare a complete cafr what are the minimum requirements per gaap?

The carrying value of the bonds on the retirement date was : presented below are three independent situations a howell corporation purchased 350000 of its bonds on june 30 2010 at

Determining charges for private pay residents shady grove : determining charges for private pay residents. shady grove nursing home has 220 private pay residents. the

The board of directors of gibson corporation is considering : the board of directors of gibson corporation is considering two plans for financing the purchase of new plant

In setting its rate for the coming year how much would jwc : profit charges and break-even without and with overhead. a number of years ago at the request of its employees jack

Snappy company has a job-order cost system and uses a : snappy company has a job-order cost system and uses a predetermined overhead rate based on direct labor-hours to apply

During the current year karen sells her entire interest in : during the current year karen sells her entire interest in central corporation common stock for 22000. she is the sole

User Account

All Pages