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Assume that the managers of County General Hospital are setting the price on a new outpatient service. Here are relevant data estimates: S Variable cost
Assume that the managers of County General Hospital are setting the price on a new outpatient service. Here are relevant data estimates: S Variable cost per visit 35 Annual Direct Fixed Costs $ 1,575,500 Annual Overhead Allocation S 415,000 Expected Annual Utilization - Visits 34,000 a. 1) What per visit price must be set for the service to reach accounting breakeven? 2). What per visit price must be set to earn an annual profit of $500,000? b. Repeat Part a, but assume that the variable cost per visit is $40
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