Case Study of a Health Care Organizations Financial health

timer Asked: Nov 11th, 2016

Question description

In this assessment you will use the data provided below and conduct a profit (CVP) analysis. You will be graded based on your understanding of profit (CVP) analysis, the accuracy of your calculations, the validity of you conclusions and your ability to clearly communicate your analysis. To complete this assignment, follow these steps.

  1. Assume the following information about cost and charges for a hospital in 2014:

For the initial profit/loss calculation assume the volume of 15,000 inpatient days

Fixed Costs = $10,000,000

Variable cost per inpatient Day = $200

Charge Per Inpatient Day = $1,000.

  1. Review Week 3 readings and powerpoint summary on Cost Volume Profit Analysis. From what you have learned in these resources do the following:

a) Construct the hospital's base case projected profit and Loss statement

b) Explain the difference between an accounting profit and an economic profit

c) What is the hospital's break even point?

d) Define the contribution margin? What is it's economic meaning?

e) What volume is required to provide a profit of $1 million?

f) What volume is required to provide a profit of $500,000?

g) Explain in general how breakeven points vary in a capitated vs. non-capitated environment.

In submitting the above information, please show all calculations to get to the final answer and be sure to include a cover page with your name, class/section and instructor’s name

Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors