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Construct the clinic base case projected P-L statement

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Question - COST BEHAVIOR, COSTING, AND PROFIT ANALYSIS - Using the data below for an outpatient health clinic, answer the following questions. Be sure to use functions/formulas to show your work.

Fixed costs $500,000

Variable cost per visit $25

Charge (revenue) per visit $100

Clinic visits 7,500

Required -

a. Construct the clinic's base case projected P&L statement?

b. What is the clinics's breakeven point (volume / visits needed to breakeven)?

c. What is the economic breakeven (volume required ) to provide a profit of $200,000?

d. What is the total contribution margin if volume decreases by 15%?

Reference no: EM133099861

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