Use the Information Below to Answer the Following Question(s)

question 154

Multiple Choice

Use the information below to answer the following question(s) .The following information is for Winnie Company:

-A hospital receives $1,000,000 monthly in funding from various sources.Annual fixed costs are projected to be $5,000,000 and the variable cost per patient, across all departments is projected to be $534.80.Last year they treated 11,500 patients.The hospital expects a 5% increase in patients this year.A governing bylaw requires that the hospital be run as a non-profit organization.What is the maximum number of patients the hospital can expect to be able to treat assuming the operating income is zero?

• A)11,500
• B)12,079
• C)13,000
• D)more than 13,000
• E)CVP analysis is not relevant for non-profit organizations.

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Definitions:

Linear Approximations

A method for approximating the value of a function near a given point using the tangent line at that point.

Aggregate Plan

A plan for production, inventory, and stock levels over a medium range of time, aiming to balance demand and supply in a cost-effective manner.

Product Families

Groups of related products that are offered by a business, often sharing common components or targeting similar markets.

Safety Inventory

A buffer of additional stock kept to prevent out-of-stock situations, taking into account unforeseen fluctuations in demand or supply.