Case 07-53 Student Name:

Class:

1.
Delaware Medical Center
Break-Even Point in Patient Days: Pediatrics
For the Year Ended June 30, 20x2

Total fixed costs:

Medical center charges #REF!
Supervising nurses #REF!
Nurses #REF!
Aids #REF!
Total fixed costs #REF!

Contribution margin per patient-day:

Revenue per patient-day #REF!
Variable cost per patient-day #REF!
Contribution margin per patient-day #REF!

Break-even point in patient days:

Total fixed costs #REF!
Contribution margin per patient-day #REF!
Break-even point in patient days #REF!

2.
Delaware Medical Center
Loss from Rental of Additional 20 Beds: Pediatrics
For the Year Ended June 30, 20x2

Increase in revenue:
Additional beds #REF!
Days #REF!
Charge per day #REF!
Increase in revenue #REF!

Increase in expenses:
Variable charges by medical center
Additional beds #REF!
Days #REF!
Charge per day #REF!
Variable charges by medical center #REF!
Fixed charges by medical center
Medical center charges #REF!
Bed capacity #REF!
Additional beds #REF!
Fixed charges by medical center #REF!
Salaries
 Patient-days before additional 20 beds #REF!
Additional beds #REF!
Days #REF!
Patient-days after additional 20 beds #REF!
Additional personnel required #REF!
Total increase in expenses #REF!
Net change in earnings from rental of additional 20 beds #REF!
Case 07-53 Student Name: Instructor
Class: McGraw-Hill/Irwin

1.
Delaware Medical Center
Break-Even Point in Patient Days: Pediatrics
For the Year Ended June 30, 20x2

Total fixed costs:

Medical center charges $2,900,000
Supervising nurses 100,000
Nurses 200,000
Aids 180,000
Total fixed costs $3,380,000

Contribution margin per patient-day:

Revenue per patient-day $ 300
Variable cost per patient-day 100
Contribution margin per patient-day $ 200

Break-even point in patient days:

Total fixed costs $3,380,000
Contribution margin per patient-day $ 200
Break-even point in patient days 16,900

2.
Delaware Medical Center
Loss from Rental of Additional 20 Beds: Pediatrics
For the Year Ended June 30, 20x2

Increase in revenue:
Additional beds 20
Days 90
Charge per day 300
Increase in revenue $ 540,000

Increase in expenses:
Variable charges by medical center
Additional beds 20
Days 90
Charge per day 100
Variable charges by medical center $ 180,000
Fixed charges by medical center
Medical center charges 2,900,000
Bed capacity 60
Additional beds 20
Fixed charges by medical center 966,660
Salaries
 Patient-days before additional 20 beds 20,000
Additional beds 20
Days 90
Patient-days after additional 20 beds 21,800
Additional personnel required -
Total increase in expenses $1,146,660
Net change in earnings from rental of additional 20 beds $ (606,660)
l/Irwin