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 estimated patient-days for next year.What is the break-even point expressed in total revenue?

A) $10 million
B) $12.5 million
C) $20 million
D) $100 million