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Please utilize the information and table provided below to answer problems 6 and 7 . Your nursing home s CFO has asked you to conduct
Please utilize the information and table provided below to answer problems and Your nursing homes
CFO has asked you to conduct a breakeven analysis. Your organization defines output as a patient day. Its
present volume is patient days. The average cost per day is $ Present revenues and costs are
presented below:
Revenues:
Charge Patients Patient Days $
FixedPrice Patients Patient Days
Total Net Revenues $
Costs:
Fixed Costs $
Variable Costs $PD
Total $PD $
Net Income $
Using the information outlined in the table above, please answer the following two questions.
What is the breakeven inpatient days for this nursing home, assuming no profit is required?
If volume goes up percent to patient days and payer mix is unchanged, what will net income be
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