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The following is Aspen Ciinic's contribution format income statement for last year: Per Visit Revenue $6,000,000 5 120 Less: Variable Expenses 2 700 000 54
The following is Aspen Ciinic's contribution format income statement for last year: Per Visit Revenue $6,000,000 5 120 Less: Variable Expenses 2 700 000 54 Contribution Margin 3,300,000 66 Less: Fixed Expenses 2 541 000 Net income $ 759,000 The clinic had 50,000 visits during last year. Required: (a) What is the clinic's contribution margin ratio? (b) What is the clinic's breakeven in number of visits? (c) What is the clinic's breakeven in total revenue? (d) If revenue increases by 300 visits, by how much should net income increase? (e) How many visits would the ciinic need to attain target profits of $2,277,000? (f) What is the clinic's margin of safety in dollars? (g) What is the ciinic's degree of operating leverage? (h) If visits increase by 20%, how much will net income increase
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