Murillo Medical Institute operates a 100 bed hospital facilityand offers a number of specialized medical services.Murillo's hospital facility and equipment are leased on along-term basis. The hospital charges $100 per patient day. On thebasis of past cost data, Murillo has estimated its variable costsas $45.70 per patient day. Fixed costs are $91,000 per month. Thehospital's administrator has estimated that the hospital willaverage 2,300 patients per month.
Required:
How much will the hospital need to charge per patient day tobreak even at this level of activity?
Refer to the original data in the problem. How many patientdays must Murillo average each month to earn a target profit of$45,000 per month?