Reference no: EM131326145
Problem # 1
General Hospital, a not- for profit acute care facility, has the following cost structure for its inpatients services:
Fixed Costs $10,000,000
Variable cost per inpatient day $200
Charge (revenue) per inpatient day $1,000
The hospital expects to have a patient load of 15,000 inpatient days next year.
Questions to be answered:
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?
d) Now assume that 20 % of the hospital's inpatient days come from a managed care plan that wants a 25% discount from charges. Should the hospital agree to the discount proposal?
Problem # 2
You are considering starting a walk-in clinic. Your financial projections for the first of operations are as follows:
Revenues (10,000 visits) $ 400, 000
Wage and benefits $ 220,000
Rent $ 5,000
Depreciation $ 30,000
Utilities $ 2,500
Medical Supplies $ 50,000
Administrative supplies $ 10,000
Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 % rate.
Questions to be answered:
a) Construct the clinics projected P&L statement.
b) What # of visits is required to break even?
c) What # of visits is required to provide you with an after-tax profit of $ 100,000?
|
Create an income statement for the given company
: Create an Income Statement for the above company. List the changes of all Balance Sheet items as a result of the transactions a-f in question 1. Create a cash flow statement for the company in question1.
|
|
Calculate the entropy change of the universe
: A copper block of 0.4 kg mass and with heat capacity at constant pressure of 150J/K at 100°C is placed in a lake at 100°C.
|
|
What advantages do you have over your competition
: Mktg 305: Teaching cases are typified by the presentation of a problem, or sometimes multiple problems, for the reader to systematically solve through the case analysis process. After initially reading or skimming the case, you should read through..
|
|
Give the formula for the price of a point
: Put-call parity shows that the underlying asset can be recreated from a combination of puts, calls, and risk-free bonds. Show how this would be done, and give the formula for the price of a point.
|
|
What is the hospitals breakeven point
: What is the hospital's breakeven point? What volume is required to provide a profit of $ 1,000,000? A profit of $500,000? What # of visits is required to provide you with an after-tax profit of $ 100,000?
|
|
Can one tool be used for managing more than one area
: What is the best tool for each area? Can one tool be used for managing more than one area? Why or why not? Support your information and make sure all information sources are appropriately cited
|
|
What is the optimal level of capital for the firm
: A corporation produces output with a constant market price of $70 per unit. The marginal product of capital is 1/(2K), where K is units of capital, with each unit assumed to be worth $1. The life span of the capital is 10 years, implying the strai..
|
|
How to accomplish equivalent of a short sale by using option
: Congress has not figured out options, however, so there are no restrictions on option trading. Explain how to accomplish the equivalent of a short sale by using options.
|
|
Research on computer literacy and information literacy
: Use the Internet to research one (1) concept in information systems that you have studied in this course. You may select a topic of your choice or you may use one (1) of the following: Computer literacy and information literacy and Using informatio..
|