Explore BrainMass

Explore BrainMass

    St. Martin Hospital Break Even Point

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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
    https://brainmass.com/business/financial-ratios/st-martin-hospital-break-even-point-381687

    Solution Preview

    1. Breakeven point in total revenue = Fixed cost/contribution margin ...

    Solution Summary

    This concise solution provides formula and calculations for break-even point in revenue and average daily revenue.

    $2.19

    ADVERTISEMENT