How much would visit volume need to increase in order

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Reference no: EM132033282

triangle pediatrics currently provides 1000 visits per year at a price of $50 per visit. the variable cost per visit is $30 and total fixed costs are $15,000.

The business manager suggest that triangle Pediatrics can increase the number of visits to 1,200 per year by cutting the price per visit by $5 and increasing the fixed advertising budget by $5000.

Construct a base case projected p&l statement and the projected p&l statement incorporating the proposed changes. should triangle Pediatrics make the suggested changes?

How much would visit volume need to increase in order for triangle pediatrics to break even with the proposed changes?

Reference no: EM132033282

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