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Acme Hospital, a not-for-profit acute care facility has the following cost structure for inpatient services: Fixed Costs $ 20,000,000 Variable cost per inpatient day $
Acme Hospital, a not-for-profit acute care facility has the following cost structure for inpatient services:
Fixed Costs | $ 20,000,000 |
Variable cost per inpatient day | $ 250 |
Charges (revenue) per inpatient day | $ 2,000 |
The hospital expects to have a patient load of 20,000 inpatient days next year. Please show your work! A. Construct the hospital's base case projected P&L statement B. What is the hospital's break-even point C. What volume is required to provide a profit of $1,000,000? A profit of $500,000
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