What is the new volume per month

Reference no: EM13266049

The North Kingstown Cancer Infusion expects tremendous growth over the next year and is projecting the following cost and rate structure for the service. Revenues are $750 per patient. Rent is $3600 per month; staff cost is $195,000 per month; leases are $10,000 per month; other fixed costs are $20,000 per month; pharmaceuticals are $500 per patient; intravenous supplies are $25 per patient; and other patient supplies are $25 per patient.

Show your work.

a. What volume of patients per month will it take for the center to breakeven?

b. If the center needs to make a profit of $75,000 per month, what is the new volume per month?

Reference no: EM13266049

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