1. Big Sky Dermatology Specialist are setting the price on a new office location. Here are the relevant data estimates:

Variable Cost Per Visit $6.00

Annual Direct fixed Cost $250,000

Annual overhead allocation $55,000

Expected annual utilization 10,000 visits

1. What per visit price must be set for the service to break-even? To earn an annual profit of $100,000?

Insert your response here.

2. Repeat Part a. but assume that the variable cost per visit is $12.

Insert your response here.

3. Return to the data given in the problem. Again repeat Part a, but assume that direct fixed costs are $1,000,000.

Insert your response here.

4. Repeat Part a assuming both a $10. Variable cost and $1,000,000 in direct fixed costs.

Insert your response here.