2-24 Hospital Costs and Pricing St. Vincent Hospital has overall variable costs of 30% of total revenue and fixed costs of $42 million per year. 1. Compute the break-even point expressed in total revenue. 2. A patient-day is often used to measure the volume of a hospital. Suppose there are going to be 50,000 patient-days next year. Compute the average daily revenue per patient necessary to break even. 2-25 Motel Rentals The Holiday Motel has annual fixed costs applicable to its rooms of $3.2 million for its 400-room motel, average daily room rents of $50, and average variable costs of $10 for cach room rented. It operates 365 days per year. 1. How much net income on rooms will be generated (1) if the motel is completely full throughout the entire year and (2) if the motel is half full? 2. Compute the break-even point in number of rooms rented. Wh I percentage occu- pancy for the year is needed to break even? 2-26 Basic Relationships, Hotel The Pippin Hotel in Chicago has 400 rooms, with a fixed cost of $350,000 per month during the busy season. Room rates average $62 per day with variable costs of $12 per rented room per day. Assume a 30-day month, 1. How many rooms must be occupied per day to break even? 2. How many rooms must be occupied per month to make a profit of $100,000? 3. Assume that the Pippin Hotel has these average contribution margins per month from use of space in its hotel: Leased shops in hotel $60,000