Breakeven analysis textbook healthcare finance 6th edition, Ask an Expert

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Breakeven Analysis?, Textbook healthcare finance 6th edition L Gapenski & K Reiter (2016)

A not-for-profit acute care facility has the following cost structure for inpatient services: Fixed costs?Variable cost per inpatient day Charge (revenue) per inpatient day $10,000,000 $200 $1,000 Assuming the hospital managers are expecting a patient load of 15,000 inpatient days next year answer the following:

a. Construct the hospital’s base case projected P&L statement.

b. Calculate the hospital’s breakeven point.

c. Calculate volume required to obtain a profit of $1,000,000.

d. Calculate volume required to obtain a profit of $500,000.

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Financial Management, Finance

Category:- Financial Management
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