Posted by Luke on Thursday, August 25, 2011 at 3:39pm.
Omega System Services, a member of the Omega Health Foundation operates a free-standing ambulatory care center that averages $60 in charges per patient. Variable costs are approximately $10 per patient, and fixed costs are about $1.2 million per year. Using this data, how many patients must be seen each day, assuming a 365-day operation, to reach the break- even point?
math - bobpursley, Thursday, August 25, 2011 at 4:29pm
annual income= 365*patientsperday*60
annual costs= 365*patientsperday*10+1,200,000
set the annual costs equal to annual revenue, and solve for patientsperday.
This is a very old problem, looking at the costs and billing numbers, maybe they were valid in 1930.
math - Henry, Thursday, August 25, 2011 at 8:16pm
X = The # patients per day.
365X = The # of patients per year.
Income = 365x Pat./yr * $60/pat.
Income = 21,900x.
Costs=365x pat./yr * $10/pat + 1.2M,
Costs = 3650x + 1.2*10^6.
Income = Cost,
21,900x = 3650x + 1.2*10^6,
21900x - 3650x = 1.2*10^6,
18250x = 1.2*10^6,
X = 66 Patients per day.
Answer This Question
More Related Questions
- Finance - Omega System Services, a member of the Omega Health Foundation ...
- Math - Can I get some help with this question please? Calculating break-even. ...
- finance - Calculating break-even. Jasmine Gonzales, administrative director of ...
- Finance - Please help with these questions, I am so novice to finance: Your Firm...
- Finance/math - Reimbursement per screen 66.05 Equip cost/mo 1450.00 technologist...
- Health care - Due to medical advancements and increasing costs, many health care...
- HCA 210 - Due to medical advancements and increasing costs, many health care ...
- health - You and several of your colleagues business partners have decided to ...
- accounting - In addition, assume that Anheuser-Busch InBev sold 200 million ...
- accounting - "Harris Company manufactures and sells a single product. A ...