st martin hospital has overall variable cost of 20% of total revenue and fixed costs of $40 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 40,000 patient days next year. compute the average daily revenue per patient day neccessary to break even.

req-1

______ / ________ = Break even point in revenue

______/_________= __________

req-2

______/______= daily revenue per patient

______/______=_________