9. Nitingday is a 200 bed hospital in Kisumu. The hospital charges Kshs. 11,000 per patientday. The variable cost per patient day is Kshs. 4,500. Fixed costs are Kshs. 10,000,000.The estimated number of patients per months is Kshs. 2500.O. How much will the hospital need to charge per patient day to break even at this level ofactivity?A. Shs. 11,000B. Shs. 11,136C. Shs. 500D. Shs. 650How many patient days must this hospital average each month to earn a target profit ofShs. 450,000 per month?A 9500B. 9508C. 6079D. 1608

The break even sales are the units sold with no profit no loss.

9. Nitingday is a 200 bed hospital in Kisumu. The hospital charges Kshs. 11,000 per patient day. The variable cost per patient day is Kshs. 4,500. Fixed costs are Kshs. 10,000,000. The estimated number of patients per months is Kshs. 2500.

9. Nitingday is a 200 bed hospital in Kisumu. The hospital charges Kshs. 11,000 per patient day. The variable cost per patient day is Kshs. 4,500. Fixed costs are Kshs. 10,000,000. The estimated number of patients per months is Kshs. 2500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

9. Nitingday is a 200 bed hospital in Kisumu. The hospital charges Kshs. 11,000 per patient
day. The variable cost per patient day is Kshs. 4,500. Fixed costs are Kshs. 10,000,000.
The estimated number of patients per months is Kshs. 2500.
O. How much will the hospital need to charge per patient day to break even at this level of
activity?
A. Shs. 11,000
B. Shs. 11,136
C. Shs. 500
D. Shs. 650
How many patient days must this hospital average each month to earn a target profit of
Shs. 450,000 per month?
A 9500
B. 9508
C. 6079
D. 1608

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