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Charity Hospital, a not-for-profit, has a maximum capacity of 20,000 discharges per year. Variable patient service costs are $445 per discharge. Variable general and administrative costs are $225 per discharge. Fixed hospital overhead costs are $4,000,000 per year. The current reimbursement rate is $1,000 per discharge. What is the volume required to breakeven? Select one or more: O a. 12,122 discharges b. 3,700 discharges c. 4,500 discharges d. 8,000 discharges

Charity Hospital, a not-for-profit, has a maximum capacity of 20,000 discharges per year. Variable patient service costs are $445 per discharge. Variable general and administrative costs are $225 per discharge. Fixed hospital overhead costs are $4,000,000 per year. The current reimbursement rate is $1,000 per discharge. What is the volume required to breakeven? Select one or more: O a. 12,122 discharges b. 3,700 discharges c. 4,500 discharges d. 8,000 discharges

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Charity Hospital, a not-for-profit, has a maximum capacity of 20,000 discharges per year. Variable patient service costs are $445 per discharge. Variable general and administrative costs are $225 per discharge. Fixed hospital overhead costs are $4,000,000 per year. The current reimbursement rate is $1,000 per discharge. What is the volume required to breakeven? Select one or more: O a. 12,122 discharges b. 3,700 discharges c. 4,500 discharges d. 8,000 discharges
Transcribed Image Text:Charity Hospital, a not-for-profit, has a maximum capacity of 20,000 discharges per year. Variable patient service costs are $445 per discharge. Variable general and administrative costs are $225 per discharge. Fixed hospital overhead costs are $4,000,000 per year. The current reimbursement rate is $1,000 per discharge. What is the volume required to breakeven? Select one or more: O a. 12,122 discharges b. 3,700 discharges c. 4,500 discharges d. 8,000 discharges
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