What is the volume required to breakeven

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Question - Longhorn Clinic currently provides 1,000 visits per year at a price of $40 per visit. The variable cost per visit (variable cost rate) is $30, and total fixed costs are $15,000. The business manager suggests that Longhorn Clinic can increase the number of visits to 1,200 per year by cutting the price per visit by $5 and increasing the fixed advertising budget by $5,000. Based on the proposed changes in this scenario, what is the volume required to breakeven?

Reference no: EM133124120

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