User Account

All Pages

Cost-volume-profit analysis in health care

Assignment Help Managerial Accounting
Reference no: EM1347359

Suppose that the managers of hospital are setting the price on new outpatient service. Here are relevant data estimates:

Variable cost per unit- $5.00
Annual direct fixed costs- $500,000
Annual overhead allocation- $50,000
Expected annual utilization- 10,000 visits

a. What per visit price must be set for the service to break even?

b. What per visit price must be set for the service to earn an annual profit of $100,000?

Reference no: EM1347359

Questions Cloud

Code of ethics-transactio cost theory and authority : Create a code of ethics for an organization of your choice. For each point in the code of ethics, describe an ethical dilemma, which would be resolved using the code of ethics.
Find the location of the first-order image : Yellow light that has a wavelength of 6.32 x10^2 nm passes through two narrow slits that are 0.201 mm apart. An interference pattern is produced on a screen 183 cm away. What is the location of the first-order image.
Question about debt and equity mix : What are the main factors that go into determining the right mix of equity and debt and If debt is always cheaper than equity, why have equity?
Determine the amount to pay for the stock : A share of stock of PJB, company pays an yearly dividend of $9.50. Determine how much would you be willing to pay for the stock if your required return is 15.8 percent.
Cost-volume-profit analysis in health care : Suppose that the managers of hospital are setting the price on new outpatient service. Here are relevant data estimates:
Describing arrow points to object in communication diagram : Why would you design a communication diagram instead of sequence diagram? Describe what the arrow which points to the object in a communication diagram signifies.
Explain cost-volume-profit analysis : Describe cost-volume-profit analysis, including the explanation of the calculation and components. In what three ways can the contribution margin be useful in cost-volume-profit analysis?
Determine which entries will be made by young company : Young Corporation lends Dobson Industries dollar 30,000 on January 1, 2010, accepting a nine month, 12 percent interest note. If Dobson dishonors note and does not pay it in full at maturity.
Brand name products do you think have failed : What famous brand name products do you think have - What famous "brand name" products do you think have failed? Why do you think this happened? What might have been done to correct the problem?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What is full costing

What is full costing? Define and compare job order costing and activity-based costing.

  Examining the cvp

Please give a 4-6 page with references about the information attached. This information will be employed as informative guidance to assist me completing the work prescribed. In particular analyzing and explaining financials.

  Determining the process costing

During May, the number of equivalent full units of materials applied to units produced by Department Q totaled 50,000, computed as follows: beginning inventory, 7,000 equivalent full units; units started and completed in May, 35,000 equivalent ful..

  Question on segment reporting

Slatter Corp operates primarily in the United States. However, few years ago, it opened plan in Spain to produce merchandise to sell there. This foreign operation has been so successful that throughout the past 24 months the company started a manu..

  Information about equivalent units and costs

Determine the equivalent units of conversion. What is the conversion costs assigned to completed calendars? What amount of conversion is assigned to the ending work-in-process inventory?

  Job-order costing-hoover inc

Hoover Inc. uses a job-order coding system. The company's inventory balances on February 1, the start of its fiscal year, were as follows:

  Flexible budgets and standard costing

Write down the benefits of standard costs and how do businesses set those standards.

  Determining costing systems

Which costing system would be more efficient when direct labor costs and direct materials are low, and overhead is high and why? Explain how the supply chain and the macroeconomic environment of the health care business fit in with your calculations?

  Advise managers whether or not this contract is profitable

Advise managers whether or not this contract is profitable. Evaluate any additional information that managers need to consider before accepting or rejecting this contract

  Activity based costing of johnson and johnson

Recognize a product or service in your organization which could use ABC. You can as well use this technique for selling and administrative costs.

  Evaluate direct materials and conversion costs

What are the corresponding units for direct materials and conversion costs, correspondingly, for June?

  Stanley works costing system

Stanley Works is one of the companies you looked at in the job-order costing vs. process costing. Which type of costing do you think that company uses, process costing or job-order costing?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd