Question: please help and post work for each part Chapter 5: Pricing Decisions and Profit Analysis 149 END-OF-CHAPTER PROBLEMS 5.1 Assume that the managers of Fort
Chapter 5: Pricing Decisions and Profit Analysis 149 END-OF-CHAPTER PROBLEMS 5.1 Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates: Variable cost per visit Annual direct fixed costs Annual overhead allocation Expected annual utilization $5.00 $500,000 $50,000 10,000 visits 2. What per-visit price must be set for the service to break even? To earn an an- nual profit of $100,000? b. Repeat part a, but assume that the variable cost per visit is $10. Return to the data given in the problem. Again repeat part a, but assume that direct fixed costs are $1,000,000. d. Repeat part a assuming both a $10 variable cost and $1,000,000 in direct fixed costs. care many services to the clinic's pa- ar follows
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