In: Accounting
You run a hospital with 100 rooms. Fixed daily cost is $988.00 which includes staff salary, property charges, maintenance etc. Variable cost per room is $12.00 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $84.00 per room per day. You sold 37.00 rooms today, how much profit/loss did you earn for today.
Income Statement |
|
Revenue |
$ 3,108.00 |
Less: Variable Cost |
$ 444.00 |
Contribution Margin |
$ 2,664.00 |
Less: Fixed cost |
$ 988.00 |
Net Income |
$ 1,676.00 |
Calculations wide income statement for better understanding
Working |
Details |
Details |
(A) |
Number of Rooms sold today |
37 |
(B) |
Charge per Room |
$ 84.00 |
(C )=(AxB) |
Total Revenue |
$ 3,108.00 |
(D) |
Number of Rooms sold today |
37 |
(E) |
Variable Cost per Room |
$ 12.00 |
(F)=(DxE) |
Total Variable Cost |
$ 444.00 |
(G)=(C-F) |
Contribution Margin |
$ 2,664.00 |
(H) |
Fixed Cost |
$ 988.00 |
(G-H) |
Profit for today |
$ 1,676.00 |