Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the input data below, how do I calculate the breakeven point for each of the following in excel: Procedures per day, Net revenue per

Using the input data below, how do I calculate the breakeven point for each of the following in excel: Procedures per day, Net revenue per procedure, supply cost?

INPUT DATA: KEY OUTPUT:
Land initial cost $150,000 NPV $1,200,857
Land opportunity cost (and salvage value) $200,000 IRR 12.9%
Building/equipment cost $10,000,000 MIRR 11.5%
Building/equipment salvage value $5,000,000 Payback 4.1
Procedures per day 20
Average net patient revenue per procedure $1,000
Labor costs $918,000
Utilities costs $50,000
Incremental overhead $36,000
Supply cost ($/procedure) $200
Inflation rate on net patient revenue 3.0%
Inflation rate on costs 3.0%
Tax rate 40.0%
Revenues lost from inpatient surgeries $1,000,000
Reduction in inpatient surgery costs $500,000
Cost of capital 9.0%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ

6th Canadian edition

978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883

More Books

Students also viewed these Finance questions

Question

What is a NURB?

Answered: 1 week ago

Question

What are the functions of top management?

Answered: 1 week ago

Question

Bring out the limitations of planning.

Answered: 1 week ago

Question

Why should a business be socially responsible?

Answered: 1 week ago

Question

Discuss the general principles of management given by Henri Fayol

Answered: 1 week ago