Dr. Kidd is planning to open a pediatrics practice. Fixed costs for the year are estimated to be $100,000. Variable costs per visit are $15.00 and the charge for a visit is $40. Dr. Kidd calculated that 1,818 routine visits are needed to break even in the first year. Is Dr. Kidd correct? (Assume that the practice receives full charges for its services - i.e., there are no discounts or allowances).

Yes, Dr. Kidd is correct

No, Dr. Kidd is incorrect as 2,500 routine visits are needed to break even.

No, Dr. Kidd is incorrect as 4,000 routine visits are needed to break even.

No, Dr. Kidd is incorrect as 6,667 routine visits are needed to break even.