Prepare a flexible budget

Assignment Help Financial Management
Reference no: EM13952119

The Fairman Care Center charges each patient $5. The center expects to have about 20,000 patient visits at the current $5 price. However, due to rising costs, the center has been forced to consider raising the charge to $6 or $7. If the prices go up, fewer people will come to the center for care. At the price of $6, only 18,000 patients are expected, and at the price of $7, there will be approximately 16,000 patients visiting the clinic.

Prepare a flexible budget for the Fairman Center at rates of $5, $6, and $7. The variable cost per patient is $4 and the fixed costs of operating the center are $32,000. What action do you recommend for the center? Why?

Reference no: EM13952119

Questions Cloud

Expected to pay dividend-what is the current stock price : The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, ..
What number of scans are the scanners equally profitable : Seattle Grace Hospital plans to invest in a new piece of CT imaging equipment. The hospital estimates that it can bill $1,500 per scan. Preliminary market assessments indicate that demand will be fewer than 5,000 scans per year. At what number of sca..
What is the firms expected rate of return : Maxwell Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is the firm's expected rate of return?
What force did this doctor exert on you at birth : Then find the force exerted upon your body at birth by Uranus. Is it very large? Next assume that you were delivered by a 100 kg physician who was on the average about 10 cm from you at birth. What force did this doctor exert on you at birth? What..
Prepare a flexible budget : The Fairman Care Center charges each patient $5. The center expects to have about 20,000 patient visits at the current $5 price. However, due to rising costs, the center has been forced to consider raising the charge to $6 or $7. Prepare a flexible b..
Selling price to outside customers : Division X makes a part that it sells to customers outside of the company. Division Y of the same company would like to use the part manufactured by Division X in one of its products. Division Y currently purchases a similar part made by an outside c..
Identify with any of the characters or situations : Within these responses, you do not need to worry about grammar, spelling, or proper organization of your ideas-the short written response is a place for you to practice writing as a means of discovering what you think, working out your ideas so th..
Which is the ratio of the radii of the planets : The weight of a object is the same on two different planets. The mass of planet A is only sixty percent that of planet B. Find ra/rb, which is the ratio of the radii of the planets.
What is dualism about mind and body what is materialism : What is dualism about mind and body? What is materialism about mind and body?

Reviews

Write a Review

Financial Management Questions & Answers

  What us the definition of a troubled debt restructuring

NYY corp., a calendar year firm, sold equipment to Red Sox nation Inc. on Jan 1, 2010 and received in return a note, due on Dec 31, 2013, with a face value of $1,000,000, and bearing interest at a standard rate of 3% per year. What us the definition ..

  What is the price of this preferred stock

Tell Corporation plans a new issue of preferred stock paying annual dividend $5 per share. Similar risk stock currently offers an annual return to investors of 17%. What is the price of this preferred stock?

  Find solution using the mathematical equivalence formulae

Find the solution using the mathematical equivalence formulae (such as F=P(1+i)n ), substitute and solve (with your calculator – not with the tables) for the final answer. Solve by using the proper equivalence expressions (such as F = P(F/P, i, n)) a..

  Financing activities section of the statement of cash flows

Which of the following would be considered a cash inflow in the financing activities section of the statement of cash flows?

  Assume poisson distribution

Customers arrive at a bank teller’s booth at a rate of 2 per minute. What is the probability (to four decimal places) that 4 customers will arrive at the bank teller’s booth within the next minute (assume a Poisson distribution)?

  Using the coefficient of variation criterion

Two projects have the following expected net present values and standard deviations of net present values: Using the standard deviation criterion, which project is riskier? Using the coefficient of variation criterion, which project is riskier? Which..

  Waste management-the expense recognition principle

Consult Paragraphs 5-6 of PCAOB Auditing Standard No. 15. As an auditor, what type of evidence would you want to examine to determine whether Waste Management's decision to change the useful life and salvage value of its assets was appropriate under ..

  About the shares outstanding

The shareholders of the Pickwick Paper Company need to elect eight directors. There are 200,000 shares outstanding. What is the minimum number of shares you need to own to ensure that you can elect at least one director if the company has majority vo..

  Targeted capital structure-marginal tax rate

Brady Inc. has a targeted capital structure of 40% debt, 10% preferred stock, and 50% common stock. The marginal tax rate is 35%. Use the data below to calculate the companys WACC. Ignore flotation costs.

  The value of financial asset

The value of a financial asset is the ____

  What is its cash cycle

A firm has an inventory turnover of 8.11, an inventory period of 45 days, average inventory of $650,000, a receivables period of 32 days, and average payables of $750,000. What is its cash cycle?

  Piece of newly purchased industrial equipment costs

A piece of newly purchased industrial equipment costs $978,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7. Calculate the annual depreciation allowances and end-of-the-year book values ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd