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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