Abbington Health Center Exhibit 1. Program Cost Analysis for a Normal Year (1) Obstetrics & Internal Gynecology Pediatrics Medicine Patient visits at full capacity Actual number of patient visits 13,800 17,280 23,100 Fee per visit (after discounts and bad debts) 80.45 65.30 75.60 Net revenue $1,110,210 $1,128,384 $1,746,360 Variable cost per visit 29.80 19.90 45.10 Total variable cost 411 240 343.872 1.041.810 Contribution to program fixed costs $698,970 $784,512 $704,550 Less: Program fixed costs 350.000 470.000 565.000 Contribution to allocated fixed costs $348,970 $314,512 $139,550 Less: Allocated fixed costs (2) 215.000 285.000 300.000 Surplus (Deficit) $133,970 $29,512 ($160,450) All dollar figures except visit fee and variable cost per visit rounded to the nearest hundred dollars -) Allocated on the basis of square feet Aggregate 63,000 54,180 73.55 $3,984,954 33.17 1,796,922 $2,188,032 1.385.000 $803,032 800.000 $3,032 Cotes: Again, take a closer look at Exhibit 1, specifically the Internal Medicine program. True or false: The Internal Medicine program currently operates above breakeven volume. True False