Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLS ANSWER ALL QUESTIONS!! THANKS 1. Fill in the blanks with the correct information in the following table: Price per visit Variable Cost Number of

PLS ANSWER ALL QUESTIONS!! THANKS image text in transcribed
image text in transcribed
1. Fill in the blanks with the correct information in the following table: Price per visit Variable Cost Number of Contribution Fixed Costs Net Income per Visit Visits Margin $85 (b) 3,000 $220.000 ( $100.000 $70 $20 (c) $250,000 $130,000 (a) $35 3,250 (d) $165,000 $85,000 $78 $55 2,500 $60,000 2. The administrator for a local imaging center has been asked by her radiologists to see if it is feasible to add more imaging staff to support the practice's rapidly growing digital mammography service line, which currently has two digital mammography machines and two mammography technologists. She has compiled the following cost and revenue information for consideration: Reimbursement per test $75.00 Equipment cost per month (fixed) $1,600 Technologist cost per test (variable) $20.00 Technologist aide per test (variable) $4.00 Variable cost per test (variable) $10.00 Monthly equipment maintenance cost $700.00 per machine A. What monthly patient volume is required for the practice to realize accounting breakeven (profit = 0) at current capacity? B. What monthly patient volume is required for the practice to realize a profit of $5,000 (economic breakeven) at current capacity? C. If reimbursement dropped to $55.00 per test, what would the new accounting breakeven patient volume be? 3. You have been provided the following financial information on a possible urgent care facility being proposed in a suburban area: Projected revenue (10,000 visits/year) $400,000 Wages and benefits (fixed cost) $220,000 Rent (fixed cost) $30,000 Utilities (fixed cost) $2,500 Medical supplies (variable cost) $50,000 Administrative supplies (variable cost) $10,000 Assume that the proposed clinic is a for-profit, taxable, enterprise that would pay a 30% marginal tax rate on any reported net income. A. Construct the urgent care facility's profit and loss statement for the 1st year. B. What number of visits is projected to be necessary to achieve accounting breakeven (profit = C. What number of visits is projected to be necessary to achieve an after-tax profit of $100,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Edp Objective Questions And Explanations

Authors: Irvin N. Gleim, William A. Hillison

5th Edition

0917537521, 978-0917537523

More Books

Students also viewed these Accounting questions