Fixed Cost, Variable Cost - Contribution Margin; Total Revenue
Not what you're looking for?
A city health clinic treats two types of patients: 1) those with physical problems and 2) those with mental health problems. The revenues and costs associated with each type of patient are attached.
Fixed costs are expected to be $2,000.
a. What is the contribution margin for each type of patient?
b. If out total revenue is capped at $12,000, what mix of patients yields the best financial result?
c. If we have capacity for 350 patients in total, what mix of patients is financially most attractive?
d. We currently have 100 of each type of patient. If we want to attract additional patients, and our marketing costs are $5 to attract each additional physical patient, and $6 to attract each additional mental health patient, where should our marketing efforts go?
Purchase this Solution
Solution Summary
The fixed cost, variable costs, contribution margins and total revenues are examined. The revenues and costs associated with each type of patient is determined.
Solution Preview
Please find the attached word and excel files.
A city health clinic treats two types of patients: 1) those with physical problems and 2) those with mental health problems. The revenues and costs associated with each type of patient are as follows:
Physical Mental
Average revenue received $40 $50
Variable costs $20 $25
Fixed costs are expected to be $2,000.
a. What is the contribution margin for each type of patient?
b. If out total revenue is capped at $12,000, what mix of patients yields the best financial result?
c. If we have capacity for 350 patients in total, what mix of patients is financially most attractive?
d. We currently have 100 of each type of patient. ...
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Operations Management
This quiz tests a student's knowledge about Operations Management
Basics of corporate finance
These questions will test you on your knowledge of finance.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.