ABC hospital, a not for profit acute care facility, expects to have a patient load of 20,000 inpatient days next year and has the following cost structure for its inpatient services?
Fixed Cost
$10,000,000
Variable costs per inpatient day
$300
Charge (revenue) per inpatient day
$1200
What is the hospitals expected profit and /or loss?
a)Profit of $14 million
b)Profit of $8 million
c)breakeven
d)Profit of $18 million