St. Martin Hospital has overall variable cost of 20% of total revenue and fixed costs of $40 million per year.
1. Computer 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 necessary to break even.© BrainMass Inc. brainmass.com June 4, 2020, 1:09 am ad1c9bdddf
1. Breakeven point in total revenue = Fixed cost/contribution margin ...
This concise solution provides formula and calculations for break-even point in revenue and average daily revenue.