Not-for-profit acute care facility

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Reference no: EM13721622

General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services:

Fixed costs: $10,000,000

Variable cost per inpatient day: 200

Charge (revenue) per inpatient day: 1,200

The hospital expects to have a patient load of 15,000 inpatient days next year.

a) Construct the hospital's base case projected P&L statement.

b) What is the hospital's breakeven point?

c) What volume is required to provide a profit of $1,000,000? A profit of $500,000?

Reference no: EM13721622

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