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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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
