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
One of the projects the US loan would fund is to build earthquake-resistant buildings. The project will begin in March 2013, last for two years and is expected to have the followin

Factors that Influence the Cost of Finance 1. Terms of reference - if short term, the cost is generally low and vice versa. 2. Economic conditions prevailing - If a com

what is the importance of public expenditure

flotation cost of 15% for bond, bonds 8%,$1,000 par value, 16 year maturity

In mergers, acquisitions, or other relationships between hospitals and physician groups, what are the benefits to each party from entering into an arrangement with the other? What

What are the principles of multiunit finance?

Ask question #Minimum what are the challenges that a finance manager may face?

Lock-Box System In a lock-box system, the customer sent the payments to a post office box. The post office box is emptied with the firm's bank at minimum once or twice all bus

Why are financial institutions heavily regulated, with specific focus on their ability to increase or reduce the money supply?

1.  Determine what is the future value of $20 a week for 10 (ten) years at 6 percent interest? Assume the first payment takes place at the end of this week. 2.  Kristina started