Question
H Ontext: A physician visit has estimated its expected reimbursement and variable cost per visit and total fixed cost. roblem: Using the table below,
H Ontext: A physician visit has estimated its expected reimbursement and variable cost per visit and total fixed cost. "roblem: Using the table below, calculate breakeven output given the information below and calculate net income. All calculations must be demonstrated. Problem: Using the table below, calculate breakeven output given the information below and calculate net income. All calculations must be demonstrated. Assumptions: The original investment amount was $210,000. Operations began in Jan. Numbers about patient visits delivered are 4,000, 4,500, and 5,000 per month (Jan., Feb, Mar. respectively). The price reimbursed per patient is $75.00. Total Fixed costs are $225,000 per month and the variable costs in average per patient is $24.00 Original Investment Reimbursement per patient or Unit Price 5 Total fixed cost per month 10 Average variable cost per patient Based on the information, determine the Unadjusted Rate of Return based 11 on Average Investment: 12 13 Calculate operating income at: 14 Quantity/# of Patients 15 Total Revenue 16 Total variable cost 17 Gross Margin or Contribution Margin 18 Total fixed cost (given) 19 Net income 20 21 22 Reimbursement per Patient or Unit Price 23 Total fixed cost per month 24 Average variable cost 25 Breakeven output (BE) 26 27 28 29 30 31 Jan Feb Mar Annualised Gross Marging Total Review-Total Variable Costs Net Income Gross Margin - Total Fixed Cost K M N Breakeven output= Fixed Costs/(Unit Price - Variable Costs)
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