General Hospital, a not for profit acute care facility

| June 12, 2016

Question
. General Hospital, a not for profit acute care facility, has the following cost structure for its inpatient services: FIxed costs $10,0000,00 Variable cost per inpatient day $200 Charge (revenue) per in patient day $1,000 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?

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