Reference no: EM13721621
Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates:
Variable cost per visit: $5
Annual direct fixed costs: $500,000
Annual overhead allocation: $50,000
Expected annual utilization: 10,000 visits
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 the direct fixed costs are $1,000,000.
d) Repeat Part a assuming both a $10 variable cost and $1,000,000 in direct fixed costs.
|
What is the value of the bond if the market rate
: A bond's par value is $1,000. It has 5 yrs. until maturity. Its coupon rate is 7%. What is the value of the bond if the market rate is 10%, assuming annual compounding?
|
|
Payments are annual and the loan will negatively amortize
: Instruction as how you solve with a financial calculator is preferred. A business borrows $325,914 for 8 years at an annual rate of interest of 6.1%. If payments are annual and the loan will negatively amortize by $30,539, what will be the annual pay..
|
|
Fixed costs and average variable cost rate
: Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $150 for each of its 20,000 members. Past experience indicates that the population..
|
|
Not-for-profit acute care facility
: General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services:
|
|
Setting the price on new outpatient service
: Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service. What per visit price must be set for the service to break even? To earn an annual profit of $100,000? Repeat Part a, but assume that the variable co..
|
|
The importance of adhering to a convention
: A research paper. You will need to have an abstract and a reference page. The importance of adhering to a convention such as APA format when writing and researching. What do you like about it? What would you change about APA if you could? Why? ..
|
|
Explain restrictions placed on state and local government
: Explain the restrictions placed on state and local government debt in your state. Provide examples to support your answer.
|
|
What is the present value of the car payments
: The car dealership offers you no money down on a new car. You may pay for the car in 6 equal annual end-of-the year payments of $7,648 each with the first payments to be made one year from today. If the discount rate is 8.91 percent compounded annual..
|
|
What is the exchange rate between the rupee and pound
: Assume the exchange rate between US dollar and Indian Rupee is 60 Rupees = $1, and exchange rate between dollar and British pound is 1 Pound = $1.50. What is the exchange rate between the Rupee and pound?
|