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Studying the demand for the procedures

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Dr. Jones is deciding on whether to open a Surgery Center. He estimates that the annual Fixed Overhead costs for the center will be $120,000. He also estimates that he will have $75,000 is fixed staffing costs. Dr. Jones accountant has told him that his variable costs will be $250 per surgical case in staffing costs, plus an additional $75 per case in medical supplies. In studying the demand for the procedures, Dr. Jones feels that he will perform approximately 100 surgeries per year.

What must he collect per surgical case per procedure to break even?

In order to make a 100,000 profit, what must Dr. Jones collect per case?

Assuming a volume of 200 surgeries, what must Dr. Jones collect per case to break-even?

Reference no: EM132798255

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