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Longhorn Clinic currently provides 1,000 visits per year at a price of $40 per visit. The variable cost per visit (variable cost rate) is $30,
Longhorn Clinic currently provides 1,000 visits per year at a price of $40 per visit. The variable cost per visit (variable cost rate) is $30, and total fixed costs are $15,000. The business manager suggests that Longhorn Clinic can increase the number of visits to 1,200 per year by cutting the price per visit by $5 and increasing the fixed advertising budget by $5,000.
Based on the base case scenario, what is the volume required to breakeven?
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