Calculate the increase in volume necessary to cover cost

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Reference no: EM13849859

Next year ABC healthcare organization will serve 100 patients in the following manner

30 Medicare Patients who pay charges less 30%/diagnosis

20 Medicaid patients who pay charges less 30% per diagnosis

20 Self pay who pay charges minus 20% discount

15 managed care patients who pay $700 per subscriber

5 private insurance patients who pay charges

5 bad debt patients who pay nothing

5 indigent patients who pay nothing

ABC’s VC cost is $500 per patient

ABC’s fixed cost is $50,000 per year

ABC’s charges are $1,500 per patient

Other revenue is $30,000

Depreciation is $100,000

Calculate the increase in volume necessary to cover ABC’s cost

Reference no: EM13849859

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