Question
A physician visit has estimated its expected reimbursement, variable cost per visit, and total fixed cost. Using the table below, calculate breakeven output given the
A physician visit has estimated its expected reimbursement, variable cost per visit, and total fixed cost. Using the table below, calculate breakeven output given the information below and calculate net income assuming 4,000, 4,500, and 5,000 patient visits are delivered.
Reimbursement | $75 | ||
Total fixed cost | $225,000 | ||
Average variable cost | $24 | ||
Breakeven output (BEQ) | _______ | ||
Calculate operating income at: | |||
Quantity | 4,000 | 4,500 | 5,000 |
Total Revenue | _______ | _______ | _______ |
-Total variable cost | _______ | _______ | _______ |
Contribution margin | _______ | _______ | _______ |
-Total fixed cost | _______ | _______ | _______ |
Net income | _______ | _______ | _______ |
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