$ 25.00 $ 1,625,000 2 Assume that the managers of County General Hospital are setting the...

  

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$ 25.00 $ 1,625,000 2 Assume that the managers of County General Hospital are setting the price on a new outpatient service. Here are relevant data estimates: 3 4 Variable cost per visit 5 Annual Direct Fixed Costs 6 Annual Overhead Allocation $ 425,000 7 Expected Annual Utilization - Visits 72,000 8 9 a. 1). What per visit price must be set for the service to reach accounting breakeven (Profit -$0)? 2). What per visit price must be set to earn an annual profit of $1,500,000? 10 11 Accounting Breakeven Price: 12. 13 Profit $1.5M Price: 14 15 16 b. Repeat Part a, but assume that the variable cost per visit is $30 and annual direct fixed costs are 1,750,000. 13 10 11 12 13 14 15 XVfx A carn an annual profit of $1,500,000? Accounting Breakeven Price: Profit $1.5M Price: D 22 Number 16 b. Repeat Part a, but assume that the variable cost per visit is $30 and annual direct fixed costs are 1,750,000. Accounting Breakeven Price: 17 18 19 20 21 22 23 24 25 Profit $1.5M Price: $10.00 V G H $ 25.00 $ 1,625,000 2 Assume that the managers of County General Hospital are setting the price on a new outpatient service. Here are relevant data estimates: 3 4 Variable cost per visit 5 Annual Direct Fixed Costs 6 Annual Overhead Allocation $ 425,000 7 Expected Annual Utilization - Visits 72,000 8 9 a. 1). What per visit price must be set for the service to reach accounting breakeven (Profit -$0)? 2). What per visit price must be set to earn an annual profit of $1,500,000? 10 11 Accounting Breakeven Price: 12. 13 Profit $1.5M Price: 14 15 16 b. Repeat Part a, but assume that the variable cost per visit is $30 and annual direct fixed costs are 1,750,000. 13 10 11 12 13 14 15 XVfx A carn an annual profit of $1,500,000? Accounting Breakeven Price: Profit $1.5M Price: D 22 Number 16 b. Repeat Part a, but assume that the variable cost per visit is $30 and annual direct fixed costs are 1,750,000. Accounting Breakeven Price: 17 18 19 20 21 22 23 24 25 Profit $1.5M Price: $10.00 V G H