Question
Assume that the manager of fort winston hospital are setting the price for a new outpatient service. here are relevant estimates: variable cost per visit
Assume that the manager of fort winston hospital are setting the price for a new outpatient service. here are relevant estimates: variable cost per visit $500 Annual direct fixed costs $500000 Annual overhead allocation $50000 Expected annual utilization $10000.
a. what per visit price must be set for the service to break even? to earn an annual of $100000.
b. repeat part a, but assume that the variable cost per visit is $10.
c. Return to the data given in the problem. Again repeat part a, but assume that direct fixed costs are $1000000.
d. Repeat part a assuming both $10 in variable cost and $1000000 in direct fixed costs.
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