Question: Questions 1. Identify the fixed and variable costs 2. What is the breakeven point? 3. What assumptions were necessary in answering questions 1 and 2?


Questions 1. Identify the fixed and variable costs 2. What is the breakeven point? 3. What assumptions were necessary in answering questions 1 and 2? EXHIBIT 1 Expense Record Detail Totai 1. Salaries $567,994 Director, assistant director, controller Nurses (2) 105.920 77,000 73,600 16,000 Social workers (2) Physical therapists (2) Support staff (3). . . . . 2. Transportation costs 56,000 . Automobile operation and insurance Automobile allowance for staff. 40,000 3. Purchased services 4. Medical and nursing supplies 5. Space occupancy costs 6. Office costs (telephone, postage, stationery) 7. Other general costs (depreciation, insurance, legal) 4,700 14,800 34,660 25,312 35,720 $739,186 . . . Number of visits Average cost per visit 6,384 115.79
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