What per visit price must be set for service to break even

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Reference no: EM131302730

Assume the managers of fort Winston hospital are setting the price on a new outpatient service. Here are relevant data estimates:

Variable cost per unit $5

Annual direct fixed costs $500,000

Annual overhead utilization $50,000

Expected annual utilization 10,000

What per visit price must be set for the service to break even? To earn a profit of $100,000

Repeat part A. Assume the variable price per unit is $10

Return to the data given in the problem. Again repeat part a, but assume the direct fixed costs are $100,000

Repeat part A. Assuming both $10 in variable cost, and $1,000,000 is direct fixed costs.

Reference no: EM131302730

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