Computing contribution margin-break even point

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Reference no: EM1347393

The following is for a Capital setting:

Fixed cost = $4,000,000
Variable costs per member = $200
Enrollment fee per member = $400
Target profit = $600,000

1. Determine the contribution margin for this practice.

2. Determine the accounting break even point in the terms of number of Enrollees.

3. Determine the economic break even point in terms of number of Enrollees.

Reference no: EM1347393

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