Question
The Atlanta clinic from a previous question had the following financial structure: Fixed costs =$900,000 Cost per clinic visits = $20 They were expected to
The Atlanta clinic from a previous question had the following financial structure: Fixed costs =$900,000 Cost per clinic visits = $20 They were expected to have 10,000 visits this year. Clinic revenue per patient visits on average was $160/visit. Total costs = Fixed Costs + Variable costs Total costs = Fixed Costs + (variable costs x volume) Total Revenue - Variable Costs = Contribution Margin Operating Margin = Contribution Margin - Fixed Costs Total Revenue - Total Variable costs - fixed costs = Profit Show all numbers in the proper equation and answer. a. How many visits will you need to breakeven? b. If they only saw 9,000 visits - when would they breakeven? c. At 11,000 visits - what is the breakeven number of visits?
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