Question
I am trying to determine how to calculate breakeven volume and revenue per inpatient day. Breakeven volume question: Assume the following costs and revenue data
I am trying to determine how to calculate breakeven volume and revenue per inpatient day.
Breakeven volume question:
Assume the following costs and revenue data for General Hospital:
Fixed costs= $15 million
Variable cost per inpatient day= $250
Revenue per inpatient day = $1,000
What is the breakeven volume (in patient days)?
The answer is 20,000 but I don't know how this is calculated.
Revenue per in patient day:
Fixed costs= $15 million
Variable cost per inpatient day= $250
What revenue per inpatient day is required to obtain a profit of $1 million at a volume of 25,000 patient days?
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