Reference no: EM131949463
Question: 1. Complete the following table.
|
Output
|
Total Fixed Cost
|
Total Variable Cost
|
Total Cost
|
|
100
|
|
|
|
|
150
|
|
75,000
|
|
|
200
|
10,000
|
|
|
|
250
|
|
|
|
|
300
|
|
|
|
2. a. Define Break -Even point.
b. From the following information calculate the Break-Even Quantity:
- Price per unit = $75
- Variable cost per unit = $ 25
- Fixed cost = $200, 000
3. What is the purpose of the budget? Why are requests for budget revisions necessary? When should a formal request for a budget revision be submitted?
4. Identify each responsibility center in the list below as either a service center, cost center (clinical or administrative), profit center (capitated or administrative), or investment center.
a. Radiology department that must control its own costs.
b. Admitting department of a hospital.
c. HMO.
d. Stand-alone outpatient clinic that must earn a 10 percent ROI.
e. Volunteer department with no budget.
f. Development office.