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.
a. $1,000 is the average daily revenue per patient necessary to breakeven.
B.
b. $4,000 is the average daily revenue per patient necessary to breakeven.
C.
c. $250 is the average daily revenue per patient necessary to breakeven.
D.
d. $10,000 is the average daily revenue per patient necessary to breakeven.