Baltiemore Hospital has overal variable costs of 24% of total revenues and fixed costs of $38 million per year.

Requirements:

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 to be 50,000 patient days next year. Compute the average daily revenue per patient-day neccessary to achieve the break-even total revenue computed in item 1.