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64 65 66 Problem 5.9 67 Charity Hospital 68 Information from textbook 69 Maximum capacity (# of discharges) per year 70 Variable patient service cost

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64 65 66 Problem 5.9 67 Charity Hospital 68 Information from textbook 69 Maximum capacity (# of discharges) per year 70 Variable patient service cost per discharge 71 Variable general/admin costs per discharge 72 Fixed Hospital overhead cost (per year) 73 Reimbursement rate per discharge 74 75 76 77 a. What is Charity's breakeven volume? (# of discha 78 79 2014 15,000 $495 $5 $4,000,000 $1,000 b. Determine 2015 contribution margin needed to reach target profit 80 81 82

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