Rampart Hospital Has Total Variable Costs of 90% of Total

Multiple Choice

Rampart Hospital has total variable costs of 90% of total revenues and fixed costs of $50 million per year. There are 50,000 patient- days estimated for next year. What is the average daily revenue per patient necessary to breakeven?

A) $250 is the average daily revenue per patient necessary to breakeven.
B) $4,000 is the average daily revenue per patient necessary to breakeven.
C) $10,000 is the average daily revenue per patient necessary to breakeven.
D) $1,000 is the average daily revenue per patient necessary to breakeven.