IMPORTANT: PLEASE SHOW STEP BY STEP SO THAT I CAN UNDERSTAND ALONG WITH EVERY FORMULA USED

1. Big Sky Dermatology Specialist are setting the price on a new office location. Here are the relevant data estimates:

Variable Cost Per Visit $8.00

Annual Direct fixed Cost $650,000

Annual overhead allocation $65,000

Expected annual utilization 10,000 visits

a. What per visit price must be set for the service to break-even? To earn an annual profit of $100,000?

Insert your response here.

2. Repeat Part a. but assume that the variable cost per visit is $12.

Insert your response here.

c. Return to the data given in the problem. Again, repeat Part a, but assume that direct fixed costs are $1,000,000.

Insert your response here.

d. Repeat Part a assuming both a $10. Variable cost and $1,000,000 in direct fixed costs.

Insert your response here.