Mondou

Mondou Medical Institute operates a300-bed hospital and offers a number of specialized medical services. Mondou

Mondou's hospital facility and equipment are leased on along-term basis. The hospital charges $ 2 comma 800

$2,800 per patient day. On the basis of past costdata, Mondou

Mondou has estimated its variable costs as $ 600

$600 per patient day. Fixed costs are $ 2 comma 300 comma 000

$2,300,000 per month. Thehospital's administrator has estimated that the hospital will average 5 comma 000

5,000 patient days per month.

Requirements

(a)

How much will the hospital need to charge per patient day to break even at this level ofactivity?

(b)

Refer to the original data in the problem. How many patient days must Mondou

Mondou average each month to earn a target profit of $ 120 comma 000

$120,000 permonth?