Consider the following data: fixed costs = $10 million and variable cost per inpatient day = $400. What revenue per inpatient day is required to obtain a profit of $1 million at a volume of 10,000 patient days $750 $1,000 $1,250 $1,500 $1,750 Solution Total Contribution = Fixed Cost + Profit =10000000+1000000 11000000 Total Revenue = Contribution + Variable Cost =11000000 +4000000 15000000 Revenue per impatient Day =15000000/10000 1500 Answer is 1500.

1. Consider the following data: fixed costs = $10 million and variable cost per inpatient day = $400.
What revenue per inpatient day is required to obtain a profit of $1 million at a volume of 10,000
patient days $750 $1,000 $1,250 $1,500 $1,750
Solution
Total Contribution = Fixed Cost + Profit =10000000+1000000 11000000 Total
Revenue = Contribution + Variable Cost =11000000 +4000000 15000000 Revenue
per impatient Day =15000000/10000 1500 Answer is 1500