Solution-Wt is the hospitals breakeven point what

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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: $1,000

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

Construct the hospital's base case projected P&L statement.
What is the hospital's breakeven point?
What volume is required to provide a profit of $1,000,000? A profit of $500,000?
Now assume that 20 percent of the hospital's inpatient days come from a managed care plan that wants a 25 percent discount from charges. Should the hospital agree to the discounted proposal?

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