Southwest Hospital Has Fixed Costs of $100 Million Per Year

question 57

Essay

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?

• A)What is the break-even point expressed in total revenue?
• B)What is the average daily revenue per patient necessary to break even?

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