18. Calculate the accounting breakeven volume (in patient days) given the following cost and revenue data...
18. Calculate the accounting breakeven volume (in patient days) given the following cost and revenue data for Palm Bay Hospital: (2 points)
Fixed costs = $10,000,000.
Variable cost per inpatient day = $400. Revenue per inpatient day =
$1,200.
a. 6,500 patient days
b. 12,500 patient days
c. 16,500 patient days
d. Not enough information is available to answer this question
Homework Answers
Answer is option (b). 12500 patient days
Explanation;
Accounting breakeven volume (in patient days) =
Fixed costs / (Revenue – Variable cost)
Accounting breakeven volume (in patient days) =
$10000000 / ($1200 – $400)
= $10000000 / $800
= 12500 patient days
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18. Calculate the accounting breakeven volume (in patient days)
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