Abc hospital a not for profit acute care facility expects

Reference no: EM13616425

ABC hospital, a not for profit acute care facility, expects to have a patient load of 20,000 inpatient days next year and has the following cost structure for its inpatient services?

Fixed Cost

$10,000,000

Variable costs per inpatient day

$300

Charge (revenue) per inpatient day

$1200

What is the hospitals expected profit and /or loss?

a)Profit of $14 million

b)Profit of $8 million

c)breakeven

d)Profit of $18 million

Reference no: EM13616425

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