Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 07 Aug 2017 My Price 4.00

nursing home

Assume that a certain nursing home has two categories of payers. Medicaid pays $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 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 the data of problem 6 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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Maurice Tutor
(5)
Status NEW Posted 07 Aug 2017 12:08 AM My Price 4.00

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