Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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? Select one or more: O a. 12,122 discharges b. 3,700 discharges c. 4,500 discharges d. 8,000 discharges
image text in transcribed
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? Select one or more: a. 12,122 discharges b. 3,700 discharges c. 4,500 discharges d. 8,000 discharges

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Valuation And Bankruptcy

Authors: Ian Ratner, Grant T. Stein, John C. Weitnauer

1st Edition

0470462388, 978-0470462386

More Books

Students also viewed these Finance questions