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The finance director of St. James hospital estimates that on average 25% of its revenue equals its variable cost. Fixed costs are budgeted at $20
The finance director of St. James hospital estimates that on average 25% of its revenue equals its variable cost. Fixed costs are budgeted at $20 million per year. If their budget predicts a volume of business of 25,000 patient-days next year, what is the average daily revenue per patient (rounded to two digits) for St. James to breakeven? A. $54,794.52 B. $800.00 C. $1,066.67 D. $3,200.00 E. $600.00
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