Question
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
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?
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
