Days of Our Lives Hospital hastotal variable costs of 90% of total revenues and fixed costs of $50 millionper year. There are 50,000 patient-daysestimated for next year. What is thebreak-even point expressed in total revenue?
举一反三
- Costs that change with the level of production are referred to as ________. A: fixed costs B: variable costs C: target costs D: total costs
- Thebreak even point is located at the intersection of the total revenue line andthe total expenses line on a cost volume profit graph.
- If a firm in circumstances of perfect competition finds that, at its best possible operating position, total revenue is not sufficient to cover total variable costs, it should:
- Suppose a Holiday Inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. It operates 365 days per year. The amount of net income on rooms that will be generated if the hotel is completely full throughout the entire year is: A: a. $(1,188,000) B: b. $4,275,000 C: c. $3,180,000 D: d. $5,475,000
- Pearl Lights sells only pearl necklaces. 8,000 units were sold resulting in $240,000 of sales revenue, $60,000 of variable costs, and $40,000 of fixed costs. The breakeven point in total sales dollars is ________. A: $40,000 B: $53,334 C: $100,000 D: $58,334