Reference no: EM131950456
FINANCIAL MANAGEMENT (HCM-213)
ASSIGNMENT 3
Q1. Complete the following table.
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Output
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Total Fixed Cost
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Total Variable Cost
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Total Cost
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100
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150
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75,000
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200
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10,000
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250
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300
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Q.2
a. Define Break -Even point.
b. From the following information calculate the Break-Even Quantity:
- Price per unit = $75
- Variable cost per unit = $ 25
- Fixed cost = $200, 000
Q3. What is the purpose of the budget? Why are requests for budget revisions necessary?When should a formal request for a budget revision be submitted?
Q4. Identify each responsibility center in the list belowas either a service center, cost center (clinical or administrative), profit center (capitatedor administrative), or investment center.
a. Radiology department that must control its own costs.
b. Admitting department of a hospital.
c. HMO.
d. Stand-alone outpatient clinic that must earn a 10 percent ROI.
e. Volunteer department with no budget.
f. Development office.
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