Question
Assignment Exercise 73: Calculating the PV Ratio and the CVP Ratio Use the same assumptions for the Greenside Clinic as in Practice Exercise 7II. -The
Assignment Exercise 73: Calculating the PV Ratio and the CVP Ratio Use the same assumptions for the Greenside Clinic as in Practice Exercise 7II.
-The Mental Health program for the Community Center has just completed its fiscal year end. The Program Director determines that his program has revenue for the year of $1,210,000. He believes his variable expense amounts to $205,000 and he knows his fixed expense amounts to $1,100,000.
One more assumption will be added: the Clinic had 35,000 visits. Required
1. In addition to the contribution margin figures already computed, now compute the PV Ratio (also known as CM Ratio).
2. Add another column to your worksheet and compute the clinics per-visit revenue and costs.
3. Create a Cost-Volume-Profit chart. Refer to the chapter text along with Figure 76. Amount Percent Per Visit Amount Percent Per Visit
Revenue Less Variable Cost Contribution Margin Less Fixed Cost Operating Profit (loss)
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