Medi-Exam Health Services, Inc. (MEHS), located in a major metropolitan area, provides annual physical screening examinations, including a routine physical, EKG, and blood and urine tests. MEUS's clients are companies offering annual physicals for their employees, but which are too small to warrant having a full-time medical staff of their own to provide this service. MEHS has its own portable equipment, which it moves from client to client so the examinations can be done at the customers facilities. MEHS also has its own central laboratory for obtaining test results. A standard examination is priced at $160 per patient.

EXHIBIT 2

Questions
1. Compute the monthly break-even volume for Medi-Exam Health Services.
2. Compute the exact profit indicated by the profit-graph for a volume of 310 examinations.
3. Determine the number of examinations performed (as opposed to billed) in August.
4. Reconcile the profit just computed with the August book profit of $10,000.

80 80 Profit EXHIBIT 1 Medi-Exam Health Services Prontgraph 60 56 Fexed Administrative 2Fised Lahoery Ched 40 2Variable Administrative 4 Vanable Laboratiny Overhead 14 Labor 20 8 Surplie 110 500 Exams iper month) MEDI-EXAM HEALTH SERVICES, INC. Income Statement For August 49,200 Revenues (310 examinations billed) Expenses: Standard cost of services billed Variances $27,280 Volume (debit) All other (debit) 1,600 1,120 9,200 Administrative expenses Profit (before income taxes) 39,200 $10,000