# Break Even Point in Total Revenue

Children's hospital predicts variable costs of 70% of total revenue and fixed costs of 42 million per year for 2011

1. Compute the break even point expressed in total revenue

2. In 2011 Children's hospital expects a total revenue of $1.5 million from 200,00 patients. Compute (a) expected profit for 2011 if costs behave as expected, and (b) total profit if variable costs in 2011 are 10% greater than predicted.

© BrainMass Inc. brainmass.com October 10, 2019, 2:32 am ad1c9bdddfhttps://brainmass.com/business/sales-revenue/break-even-point-total-revenue-381691

#### Solution Preview

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

Fixed cost = $42 million

Contribution margin ratio = 1-variable ...

#### Solution Summary

This solution helps with question involving break even points in total revenue.

$2.19