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# 1 0 . Charity Hospital, a not - for - profit, has a maximum capacity of 2 0 , 0 0 0 discharges per

#10. Charity Hospital, a not-for-profit, has a maximum capacity of 20,000 discharges per year. Variable
patient service costs are $445 per discharge. Variable general and administrative costs are $225 per
discharge. Fixed hospital overhead costs are $4,000,000 per year. The current reimbursement rate is
$1,000 per discharge.
What is the volume required to breakeven? Hint: You will need to round up to the nearest whole number.
Choice: 8,000 discharges
Choice: 4,500 discharges
Choice: 3,700 discharges
Choice: 12,122 discharges
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