Question: PLEASE SHOW STEP BY STEP SO THAT I CAN UNDERSTAND ALONG WITH EVERY FORMULA USED... I WANT TO BE ABLE TO UNDERSTAND HOW TO SOLVE

PLEASE SHOW STEP BY STEP SO THAT I CAN UNDERSTAND ALONG WITH EVERY FORMULA USED... I WANT TO BE ABLE TO UNDERSTAND HOW TO SOLVE THIS! PLEASE DO NOT SOLVE IF YOU WONT ANSWER STEP BY STEP

  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.

  1. 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.

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