Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 ( 2 0 p ints in total ) Below is some basic financial information of Blue Mountain Clinic ( BMC ) in 2

Question 5(20 pints in total)
Below is some basic financial information of Blue Mountain Clinic (BMC) in 2023. There were 500 visits, bringing a total revenue of $200,000. Assume that each visit brought the same amount of revenue. Of the total cost of $180,000,80% is variable cost and 20% is fixed cost.
5.1 How much is the contribution margin for BMC?(5 points)
5.2 How much is the operating income (or loss) of BMC?(5 points)
5.3 Now BMC sets the target of having an operating income of $60,000. How many visits does BMC need to get that target operating income? (5 points)
5.4 How many visits does BMC need to break-even? (5 points)
image text in transcribed

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

Real Estate Finance And Investments

Authors: William Brueggeman, Jeffrey Fisher

13th Edition

0073524719, 9780073524719

More Books

Students also viewed these Finance questions