Oakdale Municipal Hospital has variable costs of $80 million per year. These costs represent approximately 80% of the total revenues. 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 breakeven?

Question

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The Answer of Oakdale Municipal Hospital has variable costs of $80 million per year. These costs represent approximately 80% of the total revenues. 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 breakeven?

Oakdale Municipal Hospital Has Variable Costs of $80 Million Per