Deadwood Hospital has overall variable costs of 50% of total - 12829

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Deadwood Hospital has overall variable costs of 50% of total revenues and fixed costs of $40 million per year. There are 40,000 patient-days estimated for next year. The break-even point expressed in total revenue is _____. 

 

     a.     $80 million 

     b.     $40 million 

     c.     $10 million 

     d.     none of these answers is correct 

Solution Description

    Deadwood Hospital has overall variable costs of 50% of total revenues and fixed costs of $40 million per year. There are 40,000 patient-days estimated for next year. The break