Breakeven analysis for a Hospital
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I would like assistance with the following problem thank you.
Assume that the managers of a hospital are setting the
price on a new outpatient service. Here are relevant
data estimates[1]:
Variable cost per unit $5.00
Annual direct fixed costs $500,000
Annual overhead allocation $50,000
Expected annual utilization 10,000 visits
a. What per visit price must be set for the service to break even?
b. What per visit price must be set for the service to earn an annual profit of $100,000?
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Solution Summary
Solution contains detailed calculation to get breakeven point
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Hello,
Calculation of per visit price that must be set for the service to break even
10000visits*per visit price=(Annual direct fixed costs +Annual overhead allocation )/(per ...
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