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

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Big Sky Dermatology Specialist are setting the price on a new office location. Here are the relevant data estimates:

Variable Cost Per Visit $8.00
Annual Direct fixed Cost $650,000
Annual overhead allocation $65,000
Expected annual utilization 10,000 visits

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

Reference no: EM132656262

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