What price per visit must be set for service to breakeven

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Reference no: EM131556659

Assume that the manager of the rehabilitation department of Getwell Hospital is setting the price on a new outpatient service for electrical stimulation of muscles. Here are the relevant data estimates:

Variable cost per visit: $15.00

Annual direct fixed costs: $650,000

Annual overhead allocation: $75,000

Expected annual visits: 8,000

What price per visit must be set for the service to breakeven?

Reference no: EM131556659

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