Southwest Hospital has fixed costs of $100 million per year.Variable costs represent approximately 80% of the total revenue.There are 50,000 patient-days estimated for next year.
Required:
A)What is the break-even point expressed in total revenue?
B)What is the average daily revenue per patient necessary to break even?

Question

Quizplus · Accepted Answer

The Answer of Southwest Hospital has fixed costs of $100 million per year.Variable costs represent approximately 80% of the total revenue.There are 50,000 patient-days estimated for next year.
Required:
A)What is the break-even point expressed in total revenue?
B)What is the average daily revenue per patient necessary to break even?

Southwest Hospital Has Fixed Costs of $100 Million Per Year