Mariana clinic has the following fee and cost structure for dental services:

The monthly relevant fixed costs are $10,000, the selling price is $150 and the variable costs are $85.

Required:

1. What is the breakeven point in cleanings?
2. What is the margin of safety in dollars, assuming sales total $30,000?
3. What is the breakeven level in cleanings, assuming variable costs decrease by 20%?
4. What is the breakeven level in dollars, assuming the selling price goes down by 10% and fixed costs increase $1,000 per month?

 

Answer rating: 100% (QA)

A 1 2 Selling Price 150 85 65 10000 3 Variable Cost ... View the full answer