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please answer all the questions, its urgent! I'll make sure to give it a thumbs up. Triangle Health Center currently provides 1,000 visits per year
please answer all the questions, its urgent! I'll make sure to give it a thumbs up.
Triangle Health Center currently provides 1,000 visits per year at a price of $50 per visit. The variable cost per visit (variable cost rate) is $30, and total fixed costs are $15,000. The business manager suggests that Triangle Health Center 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. a. Construct the base case projected P&L statement and the projected P&L statement incorporating the proposed changes. Should Triangle Health Center make the suggested changes? b. How much would visit volume need to increase for Triangle Health Center to break even (revenues equal to accounting costs) with the proposed changes? These following questions needs to be answer: 1) Base Case Revenue 2)Base Case Variable Cost 3)Base Case Contribution Margin 4)Base Case Fixed Cost 5)Base Case Profit (loss) 6) Proposed Changes Revenue 7)Proposed Changes Variable Costs 8) Proposed Changes Contribution Margin 9)Proposed Changes Fixed Costs 10) Proposed Changes Profit (Loss) 11)Should Triangle make the suggested changes? Answer YES or NO. Then explain your response. 12)Breakeven Revenue 13)Breakeven Variable costs 14)Breakeven Contribution Margin 15) Breakeven Fixed cost 16) Breakeven Profit (Loss) Step by Step Solution
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