Question: Please help with Req A to Req D2 Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and
Please help with Req A to Req D2
Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs. Price per Unit Variable Cost per Unit Units Sold per Year Cleaning $ 480 $ 260 8,500 Filling 760 740 1,200 Capping 1,650 1,040 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $580,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 20 percent tax rate on income. A cleaning unit is a routine teeth cleaning that takes about 45 minutes. A filling unit is the work done to fill one or more cavities in one session. A capping unit is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (e.g., putting crowns on two teeth counts as two units). Required: a. Given this information, how much will Painless Dental Clinics, Inc., earn each year after taxes? b. Assuming the given sales mix is the same at the break-even point, at what sales revenue does Painless Dental Clinics, Inc., break even? c. Assuming the given sales mix, at what sales revenue will the company earn $176,000 per year after taxes? d-1. Painless Dental Clinics, Inc., is considering becoming more specialized in cleanings and fillings. What would be the companys revenues per year if the number of cleanings increased to 11,500 per year, the number of fillings increased to 1,300 per year, while the number of cappings dropped to zero? With this change in product mix, the company would increase its fixed costs to $630,000 per year. What would be the effect of this change in product mix on the clinics earnings after taxes per year? d-2. If the clinic's managers seek to maximize the clinic's after-tax earnings, would this change be a good idea?





Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs. Price Cleaning Filling Capping per Unit $ 480 760 1,650 Variable Cost per Unit $ 260 740 1,040 Units Sold per Year 8,500 1,200 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $580,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 20 percent tax rate on income A cleaning "unit" is a routine teeth cleaning that takes about 45 minutes. A filling "unit" is the work done to fill one or more cavities in one session. A capping "unit" is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (e.g., putting crowns on two teeth counts as two units). Required: a. Given this information, how much will Painless Dental Clinics, Inc., earn each year after taxes? b. Assuming the given sales mix is the same at the break-even point, at what sales revenue does Painless Dental Clinics, Inc., break even? c. Assuming the given sales mix, at what sales revenue will the company earn $176,000 per year after taxes? d-1. Painless Dental Clinics, Inc., is considering becoming more specialized in cleanings and fillings. What would be the company's revenues per year if the number of cleanings increased to 11,500 per year, the number of fillings increased to 1,300 per year, while the number of cappings dropped to zero? With this change in product mix, the company would increase its fixed costs to $630,000 per year. What would be the effect of this change in product mix on the clinic's earnings after taxes per year? d-2. If the clinic's managers seek to maximize the clinic's after-tax earnings, would this change be a good idea? Complete this question by entering your answers in the tabs below. Req A Req B Reqc Req D1 Req D2 Given this information, how much will Painless Dental Clinics, Inc., earn each year after taxes? Earnings Complete this question by entering your answers in the tabs below. Req A Req B Reqc Req D1 Req D2 Assuming the given sales mix is the same at the break-even point, at what sales revenue does Painless Dental Clinics, Inc., break even? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.) Break-even revenue Complete this question by entering your answers in the tabs below. Req A Req B. Reqc Req D1 Req D2 Painless Dental Clinics, Inc., is considering becoming more specialized in cleanings and fillings. What would be the company's revenues per year if the number of cleanings increased to 11,500 per year, the number of fillings increased to 1,300 per year, while the number of cappings dropped to zero? With this change in product mix, the company would increase its fixed costs to $630,000 per year. What would be the effect of this change in product mix on the clinic's earnings after taxes per year? Show less Earnings Complete this question by entering your answers in the tabs below. Req A Req B Reqc Reg Di Req D2 If the clinic's managers seek to maximize the clinic's after-tax earnings, would this change be a good idea? Yes Ono
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