Mercy Hospital Has Total Variable Costs of 80% of Total

question 4

Multiple Choice

Mercy Hospital has total variable costs of 80% of total revenues and fixed costs of $20 million per year.There are 70,000 patient-days estimated for next year.What is the break-even point expressed in total revenue?

• A)$100 million is the break-even point.
• B)$10 million is the break-even point.
• C)$12.5 million is the break-even point.
• D)None of these answers is correct.

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Definitions:

Maximum Efficiency

The highest level of productivity and effectiveness that can be achieved with the least amount of waste, effort, or expense.

Economic Benefits

Financial advantages or gains obtained from a particular activity, investment, or decision.

Job Specialization

The process of focusing one's occupational concentration on a specific area of expertise, making the individual more adept at a particular task.

Motivator-Hygiene Theory

The Motivator-Hygiene Theory, proposed by Frederick Herzberg, suggests that job satisfaction and dissatisfaction arise from two different sets of factors: motivators, which can create job satisfaction, and hygiene factors, which can prevent dissatisfaction but not necessarily create satisfaction.