A Insert vGeneralDelete v、在Conditional FormatCell000 00'Find &SelectSort &Formatting as Table StylesFormat vFilter6 % $K.P.N.Breakeven Analysis For Capitated Revenue ProblemBeand-Me-Straight (BMS) is considering a capitated agreement with a comprehensive Care for Joint Replacement program (CJR)that would provide$200per patient per year forpatients.BMS must keep000 S$$UnderIf BMS wants to make aprofit on the program and if fixed costs are000'sVariable Cost (VC) per patient under what amount in order to make the desired profit?

Contribution margin is the sales revenue after deducting variable costs. Variable costs are costs…

Answered: Breakeven Analysis For Capitated…

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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5.5. You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) Wages and benefits Rent Depreciation Utilities Medical supplies Administrative supplies $400,000 220,000 5,000 30,000 2,500 50,000 10,000 Assume that all costs are fixed, except supply costs (medical and administrative), which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. a. Construct the clinic's projected P&L statement. b. What number of visits is required to break even (revenue covers all accounting costs)? c. What number of visits is required to produce an after- tax profit of $100,000?
Use the information below to answer question 36- 43. KSB wants to run a new programme. Estimated fees to be paid by a student is 8000.00. Fixed cost for the programme is expected to be 140,000.00 per anum while variable cost per student is estimated at 4000.00. Expected enrolment is 100 students. 36. What is the contribution per student? 37. What is the c/s ratio?
For the following two alternatives, if the MARR is 10% per year (a)which one has a shorter payback period (b) which one do you select if you use the PW analysis. (c) is your selection different in (a) and (b)? Why? (d) use Spreadsheet to solve a and b. Alternative A: initial cost = $300,000 Revenue = $60,000 Alternative B: initial costs = $300,000 Revenue starts from n=1 at $10,000 and increases by $15,000 per year The expected life is 10 years for each alternative.
Assume that a certain nursing home has two categories of payers. Medicaid pays las $60.00 per day and private pay patients pay the established per diem, but approximately 10 percent of private pay charges are not collected. If 50 percent of the patients are Medicaid and 50 percent are private pay, what rate must be set to rep generate $150,000 in profit? Variable costs are $45.00 per day and fixed costs are expected to be $1,000,000. Expected volume is 50,000 patient days. Using this data and assuming that the nursing home charges $100 per day, what would be the nursing home's required volume (in patient days) in order to make $150,000 profit?
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Ten physicians have just completed their residencies in internal medicine and are considering opening a group practice. They estimate the practice would have the following annual cost structure: You must show your calculation to receive credit. Annual fixed costs Variable cost per visit $750,000 $ 50 If volume in the first year is estimated to be 10,000 visits, what price per visit must be set if the practice wants to make an annual profit of $160,000?
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Marginal cost-benefit analysis and the goal of the firm Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked to evaluate a proposal. The manager of the automotive division believes that replacing the robotics used on the heavy truck gear line will produce total benefits of $566,000 (in today's dollars) over the next 5 years. The existing robotics would produce benefits of $357,000 (also in today's dollars) over that same time period. An initial cash investment of $226,400 would be required to install the new equipment. The manager estimates that the existing robotics be sold for $56,000. Show how Ken will apply marginal cost-benefit analysis techniques to determine the following: a. The marginal benefits of the proposed new robotics. b. The marginal cost of the proposed new robotics. c. The net benefit of the proposed new robotics. d. What should Ken recommend that the company do? Why? e. What factors besides the costs and benefits should be considered before the…
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Cost-plus target return on investment pricing. Jason Brady is the managing partner of a business that has just finished building a 60-room motel. Brady anticipates that he will rent these rooms for 15,000 nights next year (or 15,000 room-nights). All rooms are similar and will rent for the same price. Brady estimates the following operating costs for next year:

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