Martin Hospital has overall variable costs of 20 percent of total revenue and fixed costs of $40
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Martin Hospital has overall variable costs of 20 percent of total revenue and fixed costs of $40 million per year.
1. Compute the break-even point expressed in total revenue.
2. A patient-day—which is one patient spending one day in the hospital—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 necessary to break even.
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Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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