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Open MRI Clinic Budget Information for Year 2004
Budgeted Revenue Per Unit $175
Budgeted Volume in Units 5000
Budgeted Total Variable Costs $375,000
Budgeted Total Fixed Costs $700,000
A) Is the Clinic expected to have income for Year 2005? Why or Why not?
B) What are various alternatives to having the Clinic show at least zero net income for the year. (Assume any of the above figures can be altered) There are 4 solutions. Show all calculations.
C) Estimate the volume in patient visits that must occur in order for the Clinic to have $100,000 profit for the year. Also, indicate what revenue level would be required to achieve the $100,000 profit. Show calculations.
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