Problem:

General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services:

Fixed costs: $10,000,000

Variable cost per inpatient day: 200

Charge (revenue) per inpatient day: 1,200

The hospital expects to have a patient load of 15,000 inpatient days next year.

Task:

Question 1: Construct the hospital's base case projected P&L statement.

Question 2: What is the hospital's breakeven point?

Question 3: What volume is required to provide a profit of $1,000,000? A profit of $500,000?

Please provide full description and show your all calculation