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Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and costs: Price per Unit Variable Cost per Unit Units
Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and costs: Price per Unit Variable Cost per Unit Units Sold per Year Cleaning $ 120 $ 80 9,000 Filling 400 300 900 Capping 1,200 500 100 -------------------------------------------------------------------------------- Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $400,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 30 percent tax rate on income. A cleaning unit is a routine teeth cleaning that takes about 45 minutes. A filling unit is the work done to fill one or more cavities in one session. A capping unit is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (e.g., putting crowns on two teeth counts as two units). Assuming the above sales mix is the same at the break-even point, at what sales revenue does Painless Dental Clinics, Inc., break even? (Round your weighted average contribution margin to 4 decimal places. Round your answer to the nearest thousand. Omit the "$" sign in your response.) Sales revenue $
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