A village doctor operates a malaria treatment clinic in a room that has the capacity to seat
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Question:
A village doctor operates a malaria treatment clinic in a room that has the capacity to seat a maximum of 25 patients at a time. The room costs N30,000 per month. For every malaria patient treated, the doctor charges N4,500 and incurs consumables of N3,000
Required
For the clinic business:
- What is the Contribution Margin per patient treated?
- What is the CM Ratio?
- What are the break-even sales in the number of patients?
- What are the break-even sales in N?
- How many patients have to be treated to make to attain target profits of N800 per month?
- What is the Margin of Safety in the number of patients?
- What is the Margin of Safety in naira of sales?
- What is the Margin of Safety in %
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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