Description Question 1 General Hospital, a not for profit acute care facility, has the following c ...

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Description Question 1 General Hospital, a not for profit acute care facility, has the following cost structure for inpatient services: Fixed costs $10,000,000 Variable costs per inpatient day $200 Charge (revenue) per inpatient day $1,000 The hospital expects to have a patient load of 15,000 inpatient days next year. a. Construct the hospitals base case projected P & L statement. b. What is the hospitals breakeven point? c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? d. Now assume that 20% of the hospital's inpatient days come from a managed care plan that wants a 25 percent discount from charges. Should the hospital agree to the discount proposal? Question 2 You are considering starting a walk-in clinic. Your financial projections for the first year of operations for the first year of operations are as follows: Revenues (10,000 visits) $400,000 Wages and benefits $220,000 Rent $5,000 Depreciation $ 30,000 Utilities $2,500 Medical Supplies $50,000 Administrative supplies $10,000 Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30% rate. a. Construct the clinics projected P and L statement. b. What number of visits is required to break even ? c. What number of visits is required to provide you with an after-tax profit of $100,000?