Calculating break-even and graphing. The North Kingstown Cancer infusion therapy

Question

Calculating break-even and graphing. The North Kingstown Cancer infusion therapy division expects tremendous growth over the next year and is projecting the following cost and rate structure for the service. Revenue $750 per patient Costs: Rent $3,600 per month Staff $195,000 per month Leases $10,000 per month Other fixed costs $20,000 per month Pharmaceuticals $500 per patient Intravenous supplies $25 per patient Other patient supplies $25 per patient a. What volume of patients per month will it take for the center to break even? b. What is the break-even point in dollars? c. If the clinic needs to make a profit of $75,000 per month, what is the new break-even point in volume per month? d. If the clinic needs to make a profit of $75,000 per month, what is the new break-even point in revenue?

Explanation / Answer

Hi, Please find the answers as follows: a) Fixed Cost = 3600 + 195000 + 10000 + 20000 = 228600 Variable Cost = 500 + 25 + 25 = 550 Break Even Point = 228600/(750-550) = 1143 patients b) =1143*750 = 857250 c) = (228600+75000)/550 = 552 d) =552*750 = 414000 Thanks.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.