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Also, previously mentioned was that the break-even analysis received it’s named due to fact that the expected profit happens to equal to zero and the total revenue also equals the total costs (Cleverley, Cleverley, & Song, 2012). In order to determine a profit, the net income must exceed the total costs. There is no profit unless the revenue exceeds the costs. Any amount of output over the break-even point will be considered as a profit. The original net income profit was $210,000. This calculation was determined by subtracting the total costs of $2,340,000 from the total net revenue of $2,550,000. To determine the new profit, the new net revenue must be calculated with the same payer mix. A 10 percent increase to the charge patient days would be from the original amount of 6,000 to 6,600 patient days. The increased patient days of 6,600 times the original $125 per day equals to $825,000. A 10 percent increase to the fixed patient days would be from the original amount of 20,000 to 22,000 patient days. The increased patient days of 22,000 patient days times the original $90 per day equals to $1,980,000. The total net revenue equals to $2,805,000. Therefore the new net income would be calculated by subtracting the total costs of $2,574,000 from the total net revenue of $2,805,000, which equals $231,000. Therefore, it’s concluded that the 10 percent increase in volume will also cause a 10 percent increase in the net income from $210,000 to