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CHAPTER 5: COST BEHAVIOR, COSTING, AND PROFIT ANALYSIS Homework Problem 2.1 Using the data below for an outpatient health clinic, answer the following questions. Be
CHAPTER 5: COST BEHAVIOR, COSTING, AND PROFIT ANALYSIS Homework Problem 2.1 Using the data below for an outpatient health clinic, answer the following questions. Be sure to use functions/formulas to show your work. Fixed costs Variable cost per visit Charge (revenue) per visit Clinic visits $500,000 $25 $100 7,500 a. Construct the clinic's base case projected P&L statement b. What is the clinics's breakeven point (volume / visits needed to breakeven)? c. What is the economic breakeven (volume required) to provide a profit of $200,000? d. What is the contribution margin if volume decreases by 15%? e. What is the Profit /(Loss) with the 15% volume decrease
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