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Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and costs Variable Cost per Unit $170 560 770 Price
Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and costs Variable Cost per Unit $170 560 770 Price per Unit Cleaning$ 300 580 1,425 Units Sold per Year 8,000 1,700 Filling Capping 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $490,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 20 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) Required a. How much will Painless Dental Clinics, Inc., earn each year after taxes? Earns b. Assuming the above sales mix is the same at the break-even point, at what sales revenue does Painless Dental Clinics Inc., break even? (Do not round intermediate calculations. Round your final answer up to the nearest whole unit.) Break-even revenue c. Assuming the above sales mix, at what sales revenue will the company earn $158,000 per year after taxes? (Do not round intermediate calculations.) Sales revenue
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