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IN and OUT Clinic's most recent income statement for its most recent fiscal year follows: Revenue $20,000, Expenses $25,000, Net Loss ($5,000) The revenue in
IN and OUT Clinic's most recent income statement for its most recent fiscal year follows: Revenue $20,000, Expenses $25,000, Net Loss ($5,000) The revenue in the income statement was from 100 patients. A judgemental analysis by management of the individual expense accounts indicates that expenses can be categorized as $15,000 of fixed expenses and $10,000 of variable expenses. 1/ Given the cost-revenue relationships in the income statement, is In and Out Statement above or below its break-even volume? 2/ What is the average revenue per patient? 3/ What is the average variable cost per patient? 4/What is the contribution margin per patient? 5/Assume the cost revenue per patient from the past year remains the same for the current year. Using the formula for break-even volume: What is the likely break-even volume of patients
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