Question
Assume that Internal Medicine had the following activity: Actual Number of Visits: 4500 Charge per visit: $60 Variable Cost per visit: $40 Total Fixed
Assume that Internal Medicine had the following activity: Actual Number of Visits: 4500 Charge per visit: $60 Variable Cost per visit: $40 Total Fixed Cost: $60,000 Calculate the contribution margin and operating income that Internal Medical will contribute to the practice. Contribution Margin: Operating Income: 3. If Internal Medicine sees two times more patients than General Surgery, why is their contribution margin so much less?
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Introduction to Management Accounting
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