Reference no: EM131623854

Problem - Your nursing home defines output as a patient day.Its present volume is 26000 patient days. The average cost per day is $90 Current revenues and costs are presented below:

revenues: charge patient (6,000 patient day).................$750,000

fixed-price patients (20000 patient day)....$1,800,000

total net revenues........................................................$2,550,000

costs: fixed costs.........................................................$1,170,000

variable costs ($45/PD)....................................$1,170,000

total ($90/PD)................................................................$2,340,000

net income.....................................................................$ 210,000

What is the break-even in patient days for this nursing home, assuming no profit is required?