1-40 Use of Accounting Information in Hospitals Most U.S. hospitals do not derive their revenues directly from patients. Instead, revenues come through third parties, such as insurance companies and government agencies. Until the 1980s, these payments generally reimbursed the hospital's costs of serving patients. Such payments, however, are now generally flat fees for specified services. For example, the hospital might receive $7,000 for an appendectomy or $28,000 for heart surgery-no more, no less. How might the method of payment change the demand for accounting information in hospitals? Relate your answer to the decisions of top management. L AMoving to the next question prevents changes to this answer. Question 2 Explosion Company produces fireworks and has provided the following information: Total fixed costs $100,000 $6 Unit variable costs Planned unit sales 30,000 The break-even point is 25,000 units. Required: Compute the selling price per unit. Compute the contribution-margin ratio. Compute the break-even volume in dollars. Compute the margin of safety. a. b. C. d. Attach File Browse My Computer Browse Content Collection JUL