Babbling Brook Hospital Has Overall Variable Costs of 75% of Total

Multiple Choice

Babbling Brook Hospital has overall variable costs of 75% 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) $160 million
B) $10 million
C) $40 million
D) None of these answers is correct.