Omega System Services, a member of the Omega Health Foundation operates a free-standing ambulatory care center that averages $60 in charges per patient. Variable costs are approximately $10 per patient, and fixed costs are about $1.2 million per year. Using this data, how many patients must be seen each day, assuming a 365-day operation, to reach the break- even point?

Question

Omega System Services, a member of the Omega Health Foundation operates a free-standing ambulatory care center that averages $60 in charges per patient.  Variable costs are approximately $10 per patient, and fixed costs are about $1.2 million per year.  Using this data, how many patients must be seen each day, assuming a 365-day operation, to reach the break- even point?