5.1 Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates

Variable cost per visit$5.00

Annual direct fixed costs$500,000

Annual overhead allocation $50,000

Expected annual utilization$10,000 visits

a. what per visit price must be set for the service to break even? to earn an annual profit of $100,000

b. Repeat Part a, but assume that the varible cost per visit is $10.

c. Return to the data given in the problem. Again repeat Part a, but assume that direct fixed cost are $1,000,000

d. repeat part a assuming both a $10 variable costs and $1,000,000 in direct fixed costs