Question
The Dental Services Center provides dental cleaning services to its patients. The selling price for cleaning is $200 and the variable costs associated with it
The Dental Services Center provides dental cleaning services to its patients. The selling price for cleaning is $200 and the variable costs associated with it are $120. The related monthly fixed costs are $12,000. Required: a. What is the breakeven point in cleanings? b. What is the margin of safety in dollars, assuming sales total $45,000? c. What is the breakeven level in cleanings, assuming variable costs decrease by 25%? d. What is the breakeven level in dollars, assuming the selling price goes down by 10% and fixed costs increase $2,000 per month?
The Dental Services Center provides dental cleaning services to its patients. The selling price for cleaning is $200 and the variable costs associated with it are $120. The related monthly fixed costs are $12,000. Required: a. What is the breakeven point in cleanings? b. What is the margin of safety in dollars, assuming sales total $45,000? c. What is the breakeven level in cleanings, assuming variable costs decrease by 25%? d. What is the breakeven level in dollars, assuming the selling price goes down by 10% and fixed costs increase $2,000 per monthStep by Step Solution
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