1 Shady Rest Nursing Home Has 100 Private Pay Residents The Administrator Is Concern 3832174

1. Shady Rest Nursing Home has 100 private pay residents. The administrator is concerned about balancing the ratio its private pay to non-private pay patients. Non-private pay sources reimburse an average of $100 per day whereas private pay residents pay average 100 percent of full daily charges. The administrator estimates that variable cost per resident per day is $25 for supplies, food, and contracted services and annual fixed costs are $4,562,500.a) If 25 percent of the residents are non-private pay, what will Shady Rest charge the private pay patients in order to break even?