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3. Assume that managers of Forth Winston Hospital are setting the price on a new outpatient service. Here are relevant data estimates: Variable cost per

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3. Assume that managers of Forth Winston Hospital are setting the price on a new outpatient service. Here are relevant data estimates: Variable cost per visit $8 Annual Direct Fixed Costs Annual Overhead Allocation $180,000 Expected Annual Utilization 18,000 visits $800,000 > 144,000 = 1,124,000 What per visit price must be set for the service to breakeven? To earn an annual profit of $80,000

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