Millbridge Memorial Hospital (MMH) provides comprehensive physical exams. The charge per exam is $100, while the variable cost per exam is $65. Thirty percent of the patients who come in for exams are private pay. They must pay the full charge. Seventy percent of the patients are covered by an insurance company that has an agreement with MMH that reduces the charge by 20 percent. MMH has $210,000 in fixed costs per year. How many exams must MMH provide in order to break even?

Millbridge Memorial Hospital (MMH) provides comprehensive physical exams. The charge per exam is $100, while the variable cost per exam is $65. Thirty percent of the patients who come in for exams are private pay. They must pay the full charge. Seventy percent of the patients are covered by an insurance company that has an agreement with MMH that reduces the charge by 20 percent. MMH has $210,000 in fixed costs per year. How many exams must MMH provide in order to break even?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 71P

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