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Break even analysis

MBA 936 views 3 replies

Please solve this-

A medical care unit of a PHC( Primary Health Care ) consists of 6,000 patient days. The income recieved by the unit was Rs. 30,00,000. The total variable and fixed costs amounted to Rs . 7,50,000 and Rs. 8,40,000. How much number of patient days are required by the unit to break-even ?  

a) 187 patient days

b) 194 patient days

c) 125 patient days

d) 140 patient days

 

 

Replies (3)
Originally posted by : Harshvardhan

Please solve this-

A medical care unit of a PHC( Primary Health Care ) consists of 6,000 patient days. The income recieved by the unit was Rs. 30,00,000. The total variable and fixed costs amounted to Rs . 7,50,000 and Rs. 8,40,000. How much number of patient days are required by the unit to break-even ?  

a) 187 patient days

b) 194 patient days

c) 125 patient days

d) 140 patient days

 

Sales value - 30,00,000

less Varaible Cost - 7,50,000

Contribution - 22,50,000

Contribution per unit = 22,50,000/6000  = 375 

 

Break even point = 8,40,000/375 = 2240 /12 = 187 patient days to reac break even poin.

 

 

 

Thanks sir !!..for your kind help. It still remains doubtful to me why you divided by 12 at the end.
Originally posted by : Harshvardhan
Thanks sir !!..for your kind help. It still remains doubtful to me why you divided by 12 at the end.

12  months...........

6000 patients days for the whole year & so i divided with 12 months for calculating month break even point.


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