Question 7.1, Finance Basics

Assume the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates.

Variable costs $ 5.00
Annual fixed cost $500,000
Annual overhead allocations $ 50,000
Expected annual utilization 10,000

a. What pre-visit price must be set for the service to break even? To earn an annual profit of $100,000?
b. Repeat part a., but assume that the variable cost is $10.
c. Return to the data given in the problem. Again repeat part a, but assume the direct costs are $1,000, 000.
d. Repeat part a, assuming both $10 in variable costs and $1,000,000 in direct fixed cost.
Posted Date: 3/2/2013 2:35:00 PM | Location : United States







Related Discussions:- Question 7.1, Assignment Help, Ask Question on Question 7.1, Get Answer, Expert's Help, Question 7.1 Discussions

Write discussion on Question 7.1
Your posts are moderated
Related Questions
Inventory Management - Supply Chain Management Determination of the best ordering policy in a manufacturing organisation In a manufacturing organisation, procurement may ha

Information Signaling Effect Theory Advanced via Stephen Ross in year 1977, He argued such in an inefficient market; management can utilize dividend policy to signal significa

Discuss capital budgeting techniques including : the Payback Rule, IRR, NPV, and the Profitability Index. Be sure to discuss the advantages and disadvantages of each one.  Di

Attached is the file for your bond problem. Your group must use the following for the bond problem. In addition, using the general ledger software as described in the project i

Assume a levered firm has a current value of $650,000,000. The firm currently has $259,258,527.20 in debt. Without debt, firm value (i.e. VU) would be $580,000,000. Ignore the cost

according to given specialization take down an industry and investigate its managerial hierarchy to describe each of one of the managerial work level functioning

Critize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime

What are the Advantages of placement Placement has the below benefits: (i) Timing of issue is significant for successful floatation of shares. In a depressed market cond

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

What is Bond Rate It is interest rate received on the face value or the par value of the bond. If a company or government issues a 10-year bond with 100$ as face value and 1