Question
Assume that the managers of the Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates: Variable
Assume that the managers of the Fort Winston Hospital are setting the price on a new
outpatient service. Here are the relevant data estimates:
Variable Cost Per Visit
$7.00
Annual Direct fixed Cost
$700,000
Annual overhead allocation
$60,000
Expected annual utilization
15,000 visits
a.
What per visit price must be set for the service to break-even? To earn an annual profit of
$100,000?
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Fundamentals Of Accounting
Authors: Claudia Gilbertson
10th Edition
1111581169, 978-1111581169
