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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Introduction to Management Accounting
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
16th edition
978-0133058819, 9780133059748, 133058816, 133058786, 013305974X , 978-0133058789
