Mercy Hospital Has Total Variable Costs of 80% of Total

Multiple Choice

Mercy Hospital has total variable costs of 80% of total revenues and fixed costs of $20 million per year.There are 70,000 patient-days estimated for next year.What is the break-even point expressed in total revenue?

A) $100 million is the break-even point.
B) $10 million is the break-even point.
C) $12.5 million is the break-even point.
D) None of these answers is correct.