math

posted by .

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 -

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 -

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.

To break-even:
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.

Similar Questions

1. Health care

Due to medical advancements and increasing costs, many health care services or procedures have moved from the inpatient hospital setting to the outpatient ambulatory care setting. What are the main purposes of ambulatory care?
2. HCA 210

Due to medical advancements and increasing costs, many health care services or procedures have moved from the inpatient hospital setting to the outpatient ambulatory care setting. What are the main purposes of ambulatory care?
3. accounting

"Harris Company manufactures and sells a single product. A partically completed schedule of the company's total and per unit cost over the relevant range of 30,000 to 50,000 per units produced and sold are: United produced and Sold: …
4. Finance

Please help with these questions, I am so novice to finance: Your Firm has an established debt policy of 60 percent for all capital expenditures. What targeted valuefor the replacement viability ratio must be set?
5. Finance

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 …
6. Math

Can I get some help with this question please?
7. accounting

In addition, assume that Anheuser-Busch InBev sold 200 million barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 40% of selling, general and administration expenses. Assume that the …
8. health

You and several of your colleagues business partners have decided to establish an outpatient fertility clinic in your service area. All of you are very familiar with this patient population base, have completed an extensive market …
9. finance

Calculating break-even. Jasmine Gonzales, administrative director of Small Imaging Center, has been asked by the practice members to see if it is feasible to add more staff to support the practiceâ€™s mammography service, which currently …
10. Finance/math

Reimbursement per screen 66.05 Equip cost/mo 1450.00 technologist cost per Mammography \$15.60 tech aid/per \$3.10 Variable cost per mamo \$15.00 Equip. maintanance/mo. per machine \$916.66 1) what is the monthly patient volume needed …

More Similar Questions