Health care revenues: Revenues and expenses gains, and losses increases or decreases the net assets of health care entity. Revenues and gains may increase unrestricted net assets, temporarily restricted net assets, or permanently restricted net assets. Revenue controlling accounts are of three types as follows The major revenue account for a hospital is operating service revenue, in which the gross revenue earned are recorded on accrual basis. following are the revenues recorded in this account Other operating revenue, which records revenue form services other than health care provided to patients and residents. Other operating revenue would include. The revenue which is not directly related to an entities principle revenue is non-operating revenue. These items include unrestricted and donor restricted pledges, gifts or grants, unrestricted income from endowment funds, and maturing property. To record: All the events in the books of B Hospital.

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Dinner (per person) . . . . . . . . . . . . . . . . . . . . . $7Favors and program (per person) . . . . . . . . . . . $3Band . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500Tickets and advertising . . . . . . . . . . . . . . . . . . . $700Riverboat rental . . . . . . . . . . . . . . . . . . . . . . . . $4,800Floorshow and strolling entertainers . . . . . . . . . . $1,000The committee members would like to charge $30 per person for the evening’s activities.Required:1. Compute the break-even point for the Extravaganza (in terms of the number of persons that must attend).2. Assume that only 250 persons attended the Extravaganza last year. If the same number attend this year, what price per ticket must be charged to break even?3. Refer to the original data ($30 ticket price per person). Prepare a CVP graph for the Extravaganza from zero tickets up to 600 tickets sold.

Answer 1

Question

Chapter 19, Problem 9E

To determine

Concept Introduction:

Health care revenues:

Revenues and expenses gains, and losses increases or decreases the net assets of health care entity. Revenues and gains may increase unrestricted net assets, temporarily restricted net assets, or permanently restricted net assets. Revenue controlling accounts are of three types as follows

The major revenue account for a hospital is operating service revenue, in which the gross revenue earned are recorded on accrual basis. following are the revenues recorded in this account

Other operating revenue, which records revenue form services other than health care provided to patients and residents. Other operating revenue would include.

The revenue which is not directly related to an entities principle revenue is non-operating revenue. These items include unrestricted and donor restricted pledges, gifts or grants, unrestricted income from endowment funds, and maturing property.

To record:All the events in the books of B Hospital.

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Dinner (per person) . . . . . . . . . . . . . . . . . . . . . $7Favors and program (per person) . . . . . . . . . . . $3Band . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500Tickets and advertising . . . . . . . . . . . . . . . . . . . $700Riverboat rental . . . . . . . . . . . . . . . . . . . . . . . . $4,800Floorshow and strolling entertainers . . . . . . . . . . $1,000The committee members would like to charge $30 per person for the evening’s activities.Required:1. Compute the break-even point for the Extravaganza (in terms of the number of persons that must attend).2. Assume that only 250 persons attended the Extravaganza last year. If the same number attend this year, what price per ticket must be charged to break even?3. Refer to the original data ($30 ticket price per person). Prepare a CVP graph for the Extravaganza from zero tickets up to 600 tickets sold.

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