Question
A hospital is setting the price on a new outpatient service with the following data estimates: Variable cost per visit: $10 Fixed Costs: $750,000 Expected
- A hospital is setting the price on a new outpatient service with the following data estimates:
Variable cost per visit: $10
Fixed Costs: $750,000
Expected Annual utilization: 12,500 visits
a. What per visit price must be set to break even? Hint: Think about what the profit is when we say breakeven. What do we mean by per visit price?
b. What per visit price must be set to earn an annual profit of $250,000?
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
4th Edition
0273710397, 978-0273710394
