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Your nursing home defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00. Present revenues and costs are presented below:
Revenues
Costs
Using this information, answer the following two questions:
1.What is the break-even in patient days for this nursing home, assuming no profit is required?2. If volume goes up 10% to 28,600 patient days and payer mix is unchanged, what will net income be?
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