your nursing home defines output as a patient day.Its present volume is 26000 patient days. The average cost per day is $90 Current revenues and costs are presented below:
revenues: charge patient (6,000 patient day)……………..$750,000
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Get Help Now!fixed-price patients (20000 patient day)….$1,800,000
total net revenues………………………………………………..$2,550,000
costs: fixed costs…………………………………………………$1,170,000
variable costs ($45/PD)………………………………$1,170,000
total ($90/PD)……………………………………………………….$2,340,000
net income……………………………………………………………$ 210,000
What is the break-even in patient days for this nursing home, assuming no profit is required?
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