Question: 1. Identify the fixed and variable costs. 2. What is the breakeven point? 3. What assumptions were necessary in answering questions 1 and 2?

1. Identify the fixed and variable costs. 2. What is the breakeven point? 3. What assumptions were necessary

1. Identify the fixed and variable costs. 2. What is the breakeven point? 3. What assumptions were necessary in answering questions 1 and 2? 1. Salaries. CARLSBAD HOME CARE Exhibit 1. Expense Record Director, assistant director, controller.. Nurses (2).. Psychologist (1)... Social workers (2).. Physical therapists (2). Support staff (3)... 2. Transportation costs. Automobile operation and insurance. Automobile allowance for staff.. 3. Purchased services....... 4. Medical and nursing supplies.............. 5. Space occupancy costs........ 6. Office costs (telephone, postage, stationery).. 7. Other general costs (depreciation, insurance, legal).. Total cost............... Number of visits... Average cost per visit........ Detail $165,140 .105,920 56,000 77,000 ************ 90,334 73,600 16,000 .40,000 Total $567,994 56,000 4,700 14,800 34,660 25,312 35,720 $739,186 6,384 $115.79

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