General Hospital Has Total Variable Costs of 90% of Total

question 33

Multiple Choice

General Hospital has total variable costs of 90% of total revenues and fixed costs of $50 million per year.There are 50,000 patient-days estimated for next year.What is the average daily revenue per patient necessary to breakeven?

• A)$1,000 is the average daily revenue per patient necessary to breakeven.
• B)$4,000 is the average daily revenue per patient necessary to breakeven.
• C)$250 is the average daily revenue per patient necessary to breakeven.
• D)$10,000 is the average daily revenue per patient necessary to breakeven.

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Definitions:

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The industrial process of producing the antibiotic penicillin, originally derived from Penicillium fungi, to combat bacterial infections.

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