Unit 5 hw assign | Management homework help

Answer the following questions in a Word or Excel file. Show all work.

  1. Assume that a certain nursing home has two categories of payers. Medicaid pays $60.00 per day and private pay patients pay the established per diem, but approximately 10 percent of private pay charges are not collected. If 50 percent of the patients are Medicaid and 50 percent are private pay, what rate must be set to generate $150,000 in profit? Variable costs are $45.00 per day and fixed costs are expected to be $1,000,000. Expected volume is 50,000 patient days.
  2. Using this data and assuming that the nursing home charges $100 per day, what would be the nursing home’s required volume (in patient days) in order to make $150,000 profit?


The key in this homework is to break down the numbers in the problem passage:

This hint is for question #1

  1. Medicaid pays $60.00
  2. The private payer has a per diem, but 10% is not collected so, what percentage does the private payer pay at a discounted rate?
  3. 50% of the patients are Medicaid, and 50% are private care: There are a total of 50,000 patients, how many are Medicaid and how many are Private pay?
  4. The Variable cost is $45
  5. The Fixed cost is $1,000,000
  6. The desired (target) profit is $150,000
  7. You have to solve for the rate-setting. There is a formula in chapter 14 that fixes this scenario.

This hint is for Question #2

  1. You have multiple payers Medicaid and Private
  2. You are to use the data from Question #1 to assist in solving this problem
  3. You are to solve for the volume.  Breakeven analysis is also called cost volume profit analysis
  4. In the formula for this problem you first have to set the value for the variable e.g. V = variable cost = $45, F = Fixed Cost = $1,000,000, NI = Target cost (what is the target cost?).  Once you have identified each variable value, it will be easy to calculate the volume.
  5. There are variables that have 0 value because the problem does not have values for those variables. 
  6. There is a formula in chapter 14 that fixes this scenario. 
Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages