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CHAPTER 7: SERVICE LINE COSTING AND PRICING Homework 3.1, Chapter 7 a. Your hospital is considering offering a new outpatient service. Using the data below,
| CHAPTER 7: SERVICE LINE COSTING AND PRICING | ||
| Homework 3.1, Chapter 7 | ||
| a. Your hospital is considering offering a new outpatient service. Using the data below, determine the price needed to breakevn. | ||
| RELEVANT DATA: | ||
| Variable cost per visit | $8 | |
| Annual direct fixed costs | $650,000 | |
| Annual overhead allocation | $60,000 | |
| Expected utilization (visits) | 15,000 | |
| Breakeven Sales Price | ||
| b. Assume now that the CEO is requesting to know what price must be set in order to earn a $100,000 profit. What price must be set in order to meet this desired profit level? | ||
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
