Posted by Varney on .
Please prepare the homework problems in the form of a Word and/or Excel file. Try to use one file to submit your answers, if possible, and include the questions with your answers. You must show your calculations.
1. 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:
Charge Patients (6,000 Patient Days) $750,000
Fixed-Price Patients (20,000 Patient Days) $1,800,000
Total Net Revenues $2,550,000
Fixed Costs $1,170,000
Variable Costs ($45/PD) $1,170,000
Total ($90/PD) $2,340,000
Net Income $210,000
Using this information, answer the following two questions:
a. What is the break-even in patient days for this nursing home, assuming no profit is required?
b. If volume goes up 10% to 28,600 patient days, and payer mix is unchanged, what will net income be?
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What is the formula to figure out these two problems?
I am trying to figure out which formula to use for this problem. For this one: (1-CO)F + NI /
= (CHxP1) +(FPxPE)-(1-CO)
my answer 66164 doesn't make sense.
FixedCost/Price per case-Variablecost, my anser of $26,000 doesnt make sense either bcs that is the original # pt days Can you offer any advice?
If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be?