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Martin hospital has overall variable cost of 20% of total revenue and fixed costs of $40 million per year.Requirements:
1.compute 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 neccessary to break even.
req-1____ / ________ = Break even point in revenue____/_________= _
req-2_____/______= daily revenue per patient___/______=_
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