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The Island Health Center offers two distinct services: a dental clinic and a sports medicine clinic. Each clinic operates 40 hours a week, 50
The Island Health Center offers two distinct services: a dental clinic and a sports medicine clinic. Each clinic operates 40 hours a week, 50 weeks a year. The following costs reflect last year's operations: Charge Utilities and Supplies TFC Salaries Dental Clinic $35/visit $5/patient $70,000 Sports Medicine Clinic $45/visit $7/patient $95,000 A. If the sports medicine clinic averages 40 patients a week, what volume of dental clinic patients is necessary for the Island Health Center to break even? pek yeak B. The Island Health Center would like to realize a $50,000 profit without increasing charges or cutting costs. How can this be done? C. Suppose the Island Health Center were divided into two separate entities (i.e., treat the dental clinic and the sports medicine clinic as individual units). Calculate the break even point in dollars for each clinic, using the contribution margin approach.
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