What is the contribution margin per procedure and break-even

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Reference no: EM13296834

Assume a specialty group has the following cost structure and that the group expects to perform 7,500 procedures in the coming year:

fixed costs $500,000
Variable cost per procedure $25
Charge (revenue) per procedure $100

what is the contribution margin per procedure and break-even point?

$75 and 6666 procedures
$100 and 7500 procedures
$20 and 6666 procedures
$75 and 5000 procedures

Reference no: EM13296834

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