Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you run a hospital with 100 rooms. fixed daily cos

You run a hospital with 100 rooms. Fixed daily cost is $988.00 which includes staff salary,...

Free

90.2K

Verified Solution

Question

Accounting

You run a hospital with 100 rooms. Fixed daily cost is $988.00which includes staff salary, property charges, maintenance etc.Variable cost per room is $12.00 which includes cleaning, equipmentrentals, utility cost etc. which is incurred only when the room isfull. You charge $84.00 per room per day. You sold 37.00 roomstoday, how much profit/loss did you earn for today.

Answer & Explanation Solved by verified expert
3.6 Ratings (296 Votes)

Income Statement

Revenue

$ 3,108.00

Less: Variable Cost

$     444.00

Contribution Margin

$ 2,664.00

Less: Fixed cost

$     988.00

Net Income

$ 1,676.00

Calculations wide income statement for better understanding

Working

Details

Details

(A)

Number of Rooms sold today

           37

(B)

Charge per Room

$        84.00

(C )=(AxB)

Total Revenue

$ 3,108.00

(D)

Number of Rooms sold today

           37

(E)

Variable Cost per Room

$        12.00

(F)=(DxE)

Total Variable Cost

$     444.00

(G)=(C-F)

Contribution Margin

$ 2,664.00

(H)

Fixed Cost

$     988.00

(G-H)

Profit for today

$ 1,676.00

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

6 5 4 3 6 5 4 3 2 1 N 2 3 4 5...

Biology
1.2K views

What are the macroscopic features (neuropathology) of chronic TBI? How is the structure of the brain...

Finance
1.2K views

A company has lower sales volume than expected and is operating at a loss. What can...

Physics
1.2K views

A given wire is bent into a circular loop of radius 7 cm and is...

Physics
1.2K views

3 E m To keep the mass from accelerating a spring is attached What is...

Calculus
1.2K views

Given z? = 24(cos 315 + isin 315) and z2 = 3(cos 120 + isin...

Calculus
1.2K views

In Problems 1 3 find the general solution draw a phase portrait and determine whether...

Algebra
1.2K views

Use the following matrix to perform the operation if possible If not possible enter IMPOSSIBLE...

Algebra
1.2K views

What are the factors of 3x4 6x38x 2x 3 O x 3 x 6 x...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.) Peng Company is considering...

Accounting
1.2K views

1. You are an ethics and compliance officer recently hired by a company recovering from...

Accounting
1.2K views

g. Assume that Perez concludes that it can sell 2,200 units of product for $67...