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Malala Dental is considering hiring a dental technician for its practice and has compiled the following information. Current Reimbursement per visit Monthly utility and
Malala Dental is considering hiring a dental technician for its practice and has compiled the following information. Current Reimbursement per visit Monthly utility and admin expenses Dentist cost per visit Dental Technician cost per visit (if added) Variable cost per visit $420 $15,000 $125 $60 $75 Equipment maintenance per month $9,000 Pre tax target profit $20,000 a. Calculate the monthly patient volume required to earn the pre tax target profit b. What is the effect (increase/decrease) of an increase in the reimbursement rate and no change in costs, on the monthly patient volume required to break even? C. Calculate the monthly patient volume to break even if the technician is hired
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