What per-visit price must be set for service to breakeven

Assignment Help Accounting Basics
Reference no: EM132101349

Question - Assume that the managers of Dominion Healthcare facility are setting the price on a new outpatient service. Here are the relevant data estimates:

Annual direct fixed costs $500,000

Variable cost per visit $5.00

Annual overhead allocation $50,000

Expected annual utilization 10,000

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

b. Repeat Part a, but assume that the variable cost per visit is $10,

c. Return to the data given in the problem. Again repeat Part a, but assume that the direct fixed costs are $1,000,000.

Reference no: EM132101349

Questions Cloud

Benefits and costs of globalization : How does the Singapore case illustrate some of the benefits and costs of globalization?
Identify in what context face-to-face communication : Identify in what context face-to-face communication is appropriate and when technology - or mediated
Devise a plan to investigate the validity of patients claims : Analyze the primary way in which different staffing levels may play pivotal roles in upholding ethical conduct, including treating patients with dignity.
Approach or knowledge in mumford model : The problem-solving competency in the skills model is most similar to: Dominance in trait approach or Knowledge in Mumford's Model?
What per-visit price must be set for service to breakeven : What per-visit price must be set for the service to breakeven? To earn an annual profit of $100,000? Return to the data given in the problem
No control on internal or external environments : In my opinion, "Threats" in SWOT analysis will be the toughest to investigate because of no control on internal or external environments
High level design for an sme network : High level design for an SME network Advanced Networking - ME504 - Master of Engineering (MENG) - melbourne institute of technology -
Examine the concept of health care ethics : Rationalize the primary concerns of conception, wrongful birth, and abortion from the perspective of health care professionals who must make these decisions.
How ehr systems reduce cost and increase quality of care : Health professionals are given the task of analyzing the information entered and translating it into knowledge to provide the best quality of care.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd