What line items represent variable costs

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Reference no: EM131948765

Qusetion: (Breakeven Analysis) You are asked to project the feasibility of opening a new outpatient clinic. Using the assumptions below, answer each question. Assumptions FFS visits per year 36,000 Revenue per visit $25 Costs: Wage and benefits $365,000 Medical supplies 65,000 Depreciation 125,000 Utilities 110,000 Marketing ?125,000 a. What line item(s) represent fixed costs? Why?

b. What line item(s) represent variable costs? Why?

c. What is the number of visits needed to breakeven? Show your calculations.

d. What is the number of visits needed to obtain a profit of $200,000? Show your calculations.

Reference no: EM131948765

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