7.1. Assume that the managers of Fort Winston's 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, visits10,000

7.1.a. (1). What per visit price must be set for the service to break even?

7.1.a. (2). What per visit price must be set to earn an annual profit of $100,000?

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

7.1. b (1) What per visit price must be set for the service to break even, with variable costs of $10 per visit?

7.1.b. (2). What per visit price must be set for the service to earn an annual profit of $100,000, with variable costs per visit of $10?

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

7.1.c. (1). What per visit price must be set for the service to break even?

7.1.c. (2). What per visit price must be set to earn an annual profit of $100,000, with direct fixed costs of $1,000,000?

7.1.d. Repeat Part A assuming both $10 in variable cost and $1,000,000 in direct fixed costs.

7.1.d. (1). What per visit price must be set for the service to break even?

7.1.d. (2). What per visit price must be set to earn an annual profit of $100,000, with both $10 in variable cost and direct fixed costs of $1,000,000?