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Your nursing home defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00. Present revenues
Your nursing home defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00. Present revenues and costs are presented below: Revenues: Charge Patients (6,000 Patient Days) $750,000 Fixed-Price Patients (20,000 Patient Days) $1,800,000 Total Net Revenues 2,550,000 Costs: Fixed Costs $1,170,000 Variable Costs ($45/PD) 1,170,000 Total ($90/PD) 2,340,000 Net Income $210,000 If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be
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