Question 7.1, Finance Basics

Assignment Help:
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.

Related Discussions:- Question 7.1

Bank draft, what is bank draft?How it can be prepared?

what is bank draft?How it can be prepared?

Define the process of opening an account with broker, Define the process of...

Define the process of Opening an Account with Broker After a broker has been selected, the investor has to place an order on the broker. The broker will open an account in t

Head office and branch or subsidiary, Head Office and Branch or Subsidiary ...

Head Office and Branch or Subsidiary MNC has diverse operations set up in dissimilar geographical locations. The HQ acts like the principal and the subsidiary like an agent he

Private limited companies, Private Limited Companies These are NOT per...

Private Limited Companies These are NOT permitted to advertise their shares so like to attract public money and so that they sell their shares privately as recognized as priva

Financial planning, Financial Planning A financial manager along with...

Financial Planning A financial manager along with present investment policies will be concerned along with how efficiently the company's funds are invested since it is from t

Solutions - shareholders and management conflict, Solutions - Shareholders ...

Solutions - Shareholders and Management Conflict Conflicts between management and shareholders may be resolved as follows like: 1. Pegging or attaching managerial compens

Intro to finance, discuss the flow of fund in an open economy

discuss the flow of fund in an open economy

Business ethics - objectives of business entity, Business Ethics - Objectiv...

Business Ethics - Objectives of Business Entity Connected to the question of social responsibility is the matter of business ethics.  Ethics are explained as the "standards of

CH 4 Problems, Homework Chapter 4 A mortgage loan in the amount of $100,000...

Homework Chapter 4 A mortgage loan in the amount of $100,000 is made at 12% interest for 20 years. Payments are to be monthly in each part of this problem. a. What will monthly

What are the functions of stock exchange, What are the Functions of Stock E...

What are the Functions of Stock Exchange Main functions performed b stock exchange are as follows: (1) Providing Liquidity and Marketability to existing securities: Sto

Write Your Message!

Captcha
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!

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