Assume that the managers of Fort Winston Hospital are setting the price on a new out-patient service. Here are the relevant data estimates: Variable cost per visit $10.00 Annual direct fixed costs $350,000 Annual overhead allocation $75,000 Expected annual utilization 12,500 visits

a) What per visit price must be set for the service to break even? To earn an annual profit of $150,000?

b) Repeat Part a, but assume that the variable cost per visit is $15.

c) Return to the data given in the problem. Again repeat Part a, but assume that direct fixed costs are $850,000

d) Repeat Part a, assuming both a $15 variable cost and $1,000,000 in direct fixed costs.