Assignment Exercise 73: Calculating the PV Ratio and the CVP Ratio Use the same assumptions for the Greenside Clinic as in Practice Exercise 7II. 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 Amount per Percent Per Visit Revenue per-visit $1,210,000 100% $100 $3,500,000 16.942 S16.940 S595.900) Less Variable Cost (205,000) Contribution Margin 100,5000 S3.06% $83.06 $2,907,100 ($90.91) (S3,181,850) Less Fixed Cost (1,100,000) 90.91% Operating Profit (loss)(95,000) 785% (S274,750) (S7.85)