Solved: Southwest hospital has fixed costs of 100 million per year, Accounting Basics

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Southwest hospital has fixed costs of 100 million per year

Question - Southwest Hospital has fixed costs of $100 million per year. Variable costs represent approximately 80% of the total revenue. There are 50,000 patient-days estimated for next year.

Required:

A) What is the break-even point expressed in total revenue?

B) What is the average daily revenue per patient necessary to break even?

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Accounting Basics: Southwest hospital has fixed costs of 100 million per year

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Accounting Basics: Southwest hospital has fixed costs of 100 million per year

Reference No:- TGS02865090

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