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WHAT PER-VISIT PRICE MUST BE SET FOR THE SERVICE TO BREAK EVEN?

WHAT PER-VISIT PRICE MUST BE SET FOR THE SERVICE TO BREAK EVEN?

Assume that the managers of Dominion Healthcare facility are setting the price on a new outpatient s Show more Assume that the managers of Dominion Healthcare facility are setting the price on a new outpatient service. Here are the relevant data estimates: Annual direct fixed costs $500000 Variable cost per visit $5.00 Annual overhead allocation $50000 Expected annual utilization 10000 a. What per-visit price must be set for the service to break even? To earn an annual profit of $100000? b. Repeat Part a but assume that the variable cost per visit is $10 c. Return to the data given in the problem. Again repeat Part a but assume that the direct fixed costs are $1000000. Show less

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