Answer:
Expected profit at a volume of 25,000 inpatient days = $3,750,000.00
Explanation:
The expected profit is calculated as follows:
<em>Step 1</em>
<em>Total contribution per inpatient from 25,000 inpatients</em>
contribution = (revenue - variable cost) per patient
= $(1000-250)
= $750 per inpatient day
<em>Total contribution for 25,000 inpatient days</em>
$750 × 25000 = $18,750,000.00
<em>Step 2</em>
<em>Calculate Profit </em>
Profit = Total contribution - Fixed cost
=$18,750,000.00 -$15,000,000
= $3,750,000.00
Expected profit at a volume of 25,000 inpatient days = $3,750,000.00
