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Bethel University CM Ratio and Cost Volume Profit Analysis Paper

Bethel University CM Ratio and Cost Volume Profit Analysis Paper

Question Description


Make sure you use scholarly references. Popular websites are not scholarly resources. Sites such as Investopedia and Wikipedia are not acceptable as these are not considered scholarly or reliable. All content that is not your original thoughts should have citations and references, including initial and response posts.

  • Define cost behavior. Define and discuss how variable cost, fixed cost and mixed cost is different. Provide an example of each in the healthcare setting.


For this assignment, write a narrative essay (minimum 1500 words) in which you address and discuss the questions and statements listed below. Use at least four scholarly sources and remember to demonstrate a thorough understanding of the READ and ATTEND sections in your essay. Cite your sources in APA format.

This week we studied cost-volume-profit analysis and budgeting as means to evaluate performance and make decisions regarding pricing and cost control. Assume your nursing home defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00. Using the present revenues and costs presented below: What is the breakeven in patient days for this nursing home, assuming no profit is required? If volume goes up 10 percent to 28,600 patient days and payer mix is unchanged, what will net income be? What is the importance of determining cost behavior and identifying controllable costs in this type of break-even analysis. Discuss the concept of management control and how budgeting is used as part of management control?

Be sure to use at least four sources and use APA format.

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