How much revenue client organization

Assignment Help Financial Management

Reference no: EM132008295

You are a financial consultant and have been asked to forecast how much revenue your client organization must generate per case to meet its financial requirements. Your client has provided you with the information below. You need to provide the following information to your client:

• The target case rate

• A brief analysis of the impact of a 5% reduction in the budgeted expense.

Annual Case Volume

Medicare 1,500

Cost-paying cases 600

Charge-paying cases 750

Charity care cases 150

Total cases 3,000

Financial data

Budgeted expense $7,290,000

Debt principal payment $350,000

Working capital increase $425,000

Capital expenditure $515,000

Current payment structure

Medicare pays $3,150 per case for a total of $4,650,000

Cost payers pay their full share of existing expenses

Reference no: EM132008295

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