ACC 206 WEEK 3 ASSIGNMENT 4
- Devry University / ACC 206
- 21 Sep 2015
- Price: $3
- Other / Other
ACC 206 WEEK 3 Break-even and other CVP relationships Cedars Hospital has average revenue of $180 per patient day. Variable costs are $45 per patient day; fixed costs total $4,320,000 per year. a. How many patient days does the hospital need to break even? b. What level of revenue is needed to earn a target income of $540,000? c. If variable costs drop to $36 per patient day, what increase in fixed costs can be tolerated without changing the break-even point as determined in part (a)?