Question

A free-standing ambulatory care center averages $70 in charges per patient. Variable costs are approximately $12 per patient, and fixed costs are about $1.5 million per year. Using these data, how many patients must be seen each day, assuming a 365-day operation, to reach the break-even point?

Answer 1

25862

Explanation:

Let the no. of patient to reach break-even point be p

Total cost = 1500000 + 12p

Total income = 70p

1500000 + 12p = 70p

58p = 1500000

p = 25862.068