Budget and Finance 4235/1225 =

Budget and Finance 4235/1225 = 3.45; 365/3.45 = 106 days The days' receivables is calculated as the revenue divided by the accounts receivable. This figure must be converted into days by dividing it into 365. The figure then must be rounded up, because partial days shouldn't be counted. Other scenario has revenues of 200 and receivables of 27. The days receivable in this case would be 50 days (49.3 days). The operating margin for April is (6325-1250) / 6325 = 80.2% For May, the operating margin is (4875-785) / 4875 = 83.9% The operating margin is the operating profit divided by revenue.

The operating profit is the revenue minus expenses. In another example, if revenue is 200 and expenses are 110, the operating margin would be 45%. The breakeven point is 500 patients. This is calculated as: 1250-750 = 500 Then 250,000 / 500 = 500 The fixed costs must be covered by the amount left over once the variable costs have been deducted from revenue. Thus, in this case revenue is 1250 and variable costs are 750, so the contribution is 500. This contribution to fixed costs is the same for every customer. Thus, the breakeven point is 250,000 / 500 = 500 customers.

In another example, if the price is 200 and the variable costs are 110, and the fixed costs are 100,000, then the breakeven point is 1112 customers. The breakeven point is always rounded up because to have less than that the company would not yet have broken even. By rounding up, the company has officially passed the breakeven point. 4. The relative value scales are 150, 300, 568.75, 264 and 160 for a total of 1442.75 The relative value scales.