Assume that the managers of fort winston hospital are

Assignment Help Accounting Basics

Reference no: EM13601200

Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are relevant data estimates:

Variable cost per visit $ 5.00
Annual direct fixed costs $500,000
Annual overhead allocation $ 50,000
Expected annual utilization 10,000

a. What per-visit price must be set for the service to break even? To earn an annual profit of $100,000?
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 direct fixed costs are $1,000,000.
d. Repeat Part a assuming both $10 in variable cost and $1,000,000 in direct fixed costs.

Reference no: EM13601200

Questions Cloud

Elle inc has two types of handbags standard and custom the : elle inc. has two types of handbags standard and custom. the controller has decided to use a plant wide overhead rate

British productions performs london shows the avg show : british productions performs london shows. the avg. show sells 1200 tickets at 50ticket. there are 120 shows a year.

Larry and curly are partners who share profits and losses : larry and curly are partners who share profits and losses in a 32 ratio. they agree to let moe into the partnershipfor

In eight years kent duncan will retire he is exploring the : in eight years kent duncan will retire. he is exploring the possibility of opening a self-service car wash. the car

Assume that the managers of fort winston hospital are : assume that the managers of fort winston hospital are setting the price on a new outpatient service. here are relevant

Brown jones and smith formed a partnership with brown : brown jones and smith formed a partnership with brown contributing 60000 jones contributing 50000 and smith

Horner company buys a delivery van with a list price of : horner company buys a delivery van with a list price of 30000. the dealer grants a 15 reduction in list price and an

Under what circumstances would you use the cost or equity : under what circumstances would you use the cost or equity method of accounting for an investment? why are the

On january 2 2010 indian river groves began construction of : on january 2 2010 indian river groves began construction of a new citrus processing plant. the automated plant was

User Account

All Pages