Multiple Choice 9. Calculate the breakeven price from the following information. quantity of services = $3,000 fixed costs = $45,000 average cost per unit = $150.00 required profit = $30,000 variable costs = $ 250,000 A. $175.00 B. $300.00 C. $135.00 D. $310.00 E. $108.00 10. The breakeven point occurs where: A. total fixed costs and total revenue intersect B. total costs and marginal or net revenue intersect C. total profit margin and total costs intersect D. total variable costs and total revenue intersect E. None of the above 11. SKF Primary Care Clinic is deciding whether to purchase an MRI scanner. From a financial position, if SKF were to make its decision without using net present value analysis, the clinic would need to know which of the following information? Hint: Breakeven analysis A. unavoidable fixed cost, volume, variable cost and indirect costs B. variable costs, volume, avoidable fixed cost and total revenue C. total unit cost, indirect costs, profit and volume D. revenue per unit, indirect costs, volume and total revenue E. avoidable fixed costs, revenue per unit, volume and contribution margin 12. Assume that the clinic used the price that they need to exactly break even at 10,000 flu shots, but total revenue fell below total costs. The reason must be ?: A. earn a profit. B. have a loss. C. break-even. D. Price set too low E. none of the above. 13. The following is an example of a _____________ budget: The budget for the radiology department is different at 90 percent occupancy than at 80 percent occupancy. A. rolling B. flexible C. forecast D. fixed 14. Because prices are often fixed in the health care industry, it is increasingly important to: A. Measure effectiveness B. Measure efficiency C. Control costs D. None of the above 15. Efficiency is a relationship between: A. Outputs and organizational goals B. Inputs and outputs C. Inputs and organizational goals D. None of the above 16. Using the information in the table below, calculate the amount of the favorable price variance. Budgeted Actual Volume 200,000 178,000 Cost per unit $40 $37 Cost $8,000,000 $7,030,000 A. $400,000 B. $570,000 C. $970,000 D. $534,000 E. cannot calculate with given information 17. What is the present value of a $ 600,000 per year ordinary annuity at a discount rate of 8% for 10 years? A. $ 1,228,000 B. $ 3,650,000 C. $ 4,026,060 D. None of the above Numeric Problems: 18. Last year the price for lollipops in a pediatricians office was $.05 each. This year, the lollipops cost $.07 each. If the office purchased 5,000 this year, what is the price variance? 19. If a Medical Center deposits $100,000 today in a bank account and the interest is compounded annually at 12%, what will be the value of this investment: a) six years from now? b) ten years from now? Design your own Problem 20. For two points create your own problem or question, including the answer. It can be of any of the types of questions such as T/F, Short Answer, but must pertain to Chapter material from Chap. 13 or later.