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home / study / business / accounting / questions and answers / in this assessment you will use the data provided ... Question 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. Assume the following information about cost and charges for a hospital in 2014: Fixed Costs = $10,000,000 Variable cost per inpatient Day = $200 Charge Per Inpatient Day = $1,000. Initial volume of 15,000 inpatient days 1.Construct the hospital's base case projected profit and Loss statement for the above question

Explanation / Answer

Profit (CVP) analysis :

Hospital's base case projected profit and Loss statement =

Details Calculation Amount $ Revenue charges 15000 * $1000 15,000,000 Less: Variable costs 15000 * $200 3,000,000 Contribution 15000 * $800 12,000,000 Fixed Costs 10,000,000 Profit 2,000,000

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