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Question 26 1 pts Cost volume profit applied to the service industry A nursing home has the following annual budget: No. of beds available |
Question 26 1 pts Cost volume profit applied to the service industry A nursing home has the following annual budget: No. of beds available | 80 per day Inpatient days 25 000 per annum Fees (inpatient) $1 500 000 Costs Variable Fixed Direct supplies 120 000 Direct salaries 850 000 Patient service overhead 55 000 140 000 Administration 100 000 190 000 Which of the following statements is correct if fixed administration costs were increased by $50 000 and all other matters remained the same? O The break-even point in inpatient days would increase. The contribution would decrease. The net profit would increase. O There would be no change in break-even point
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