Problem - Your nursing home defines output as a patient day.Its present volume is 26000 patient days. The average cost per day is $90 Current revenues and costs are presented below:
revenues: charge patient (6,000 patient day).................$750,000
fixed-price patients (20000 patient day)....$1,800,000
total net revenues........................................................$2,550,000
costs: fixed costs.........................................................$1,170,000
variable costs ($45/PD)....................................$1,170,000
total ($90/PD)................................................................$2,340,000
net income.....................................................................$ 210,000
What is the break-even in patient days for this nursing home, assuming no profit is required?