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Multiple Payor Break - Even and Net Income Planning Madison Hospital provides outpatient screening services and charges the following payor sources: Assume that total fixed
Multiple Payor BreakEven and Net Income Planning Madison Hospital provides outpatient screening services and charges
the following payor sources:
Assume that total fixed cost in $
a Compute the net income before income tax based on the sales volume shown above.
b Compute the breakeven point in total dollars of revenue and in specific unit sales volume for each product.
Contribution margin per unit
Sales mix as a
Weighted average contribution margin calculation:
Weighted average contribution margin
Breakeven in weighted average units:
Breakeven in units
Payor Source
Private Insurance
Medicare
Medicaid
Total breakeven revenue:
c Prove your breakeven calculations by computing the total contribution margin related to your answer in requirment b
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