Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The finance director of St. James hospital estimates that on average 30% of its revenue equals its variable cost. Fixed costs are budgeted at $42
| The finance director of St. James hospital estimates that on average 30% of its revenue equals its variable cost. Fixed costs are budgeted at $42 million per year. If their budget predicts a volume of business of 50,000 patient-days next year, what is the average daily revenue per patient (rounded to two digits) for St. James to breakeven? |
| A. | $115,068.49 | |
| B. | $588.00 | |
| C. | $2,800.00 | |
| D. | $1,200.00 | |
| E. | $840.00 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Internal Auditing Principles And Techniques
Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke
2nd Edition
0894133268, 978-0894133268
