Question
Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates: Variable cost
Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates:
| Variable cost per visit $5.00 |
| Annual direct fixed costs $500,000 |
| Annual overhead allocation $50,000 |
| Expected annual utilization 10,000 visits |
What per visit price must be set for the service to breakeven?
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Inside And Outside Liquidity
Authors: Bengt Holmstroem, Jean Tirole
1st Edition
0262518538, 9780262518536
