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Calculating break-even and graphing. The North Kingstown Cancer infusion therapy division expects tremendous growth over the next year and is projecting the following cost and rate structure for the service. Revenue $750 per patient Costs: Rent $3,600 per month Staff $195,000 per month Leases $10,000 per month Other fixed costs $20,000 per month Pharmaceuticals $500 per patient Intravenous supplies $25 per patient Other patient supplies $25 per patient
a. What volume of patients per month will it take for the center to break even?
b. What is the break-even point in dollars?
c. If the clinic needs to make a profit of $75,000 per month, what is the new break-even point in volume per month?
d. If the clinic needs to make a profit of $75,000 per month, what is the new break-even point in revenue?
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For the week in question, Marcia actually produced 1,050 units. In doing so, she purchased 4,000 pounds of material at a cost of $41,000 and used 4,100 pounds of materials. Direct laborers worked 3,000 hours and were paid $16,950. Variable overhea..
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