calculation:

General Hospital has only two types of patients, DRG 1 and DRG 2. below are the data of these two DRGs:

DRG 1 patients generate total average payment per case of $10,000 and cause the hospital to incur $7,000 of variable cost for each case. Direct fixed cost related to this DRG ARE $150,000.

DRG 2 patients generate average payments per case of $3000 each, and cause the hospital to incur variable cost of $1,000 for each case. Direct fixed cost related to this DRG are $100,000.

Indirect overhead cost for both DRGs combined is $350,000 which is allocated to each DRG based on revenue

Question: Assuming both DRGs have similar volume, what is the total number of cases for both DRGs combined needed to break even?( Show your work)