1. Price per vist =$85 Variable Cost per vist =? Number of visits =3000 Contribu
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Question
1. Price per vist =$85Variable Cost per vist =?
Number of visits =3000
Contribution Margin = $180,000
Fixed costs =?
Ne income = $80,000
2.Price per visit = $70
Variable cost per visit = $20
Number of visits =?
Contribution Margin = $130,000
Fixed Costs = $90,000
Net Income = ?
3. Price per visit = ?
Variable Cost per visit = $35
Number of visits = 3250
Contribution Margin = ?
Fixed costs = $78,000
Net Income = $117,000
4. Price per visit = $65
Variable cost per visit = $40
Number of visists = 2000
Contribution Margin = ?
Fixed Costs = $60,000
Net Income = ?
Thank you
what i also need to know is how and when do I know when to subtract and when to add, this is confusing.
Explanation / Answer
1.
Sales = variable costs + Fixed costs + Net income
Here (Sales-variable costs is contribution)
Contribution = Fixed cost + Net income
Fixed costs = Contribution – Net income
=$180,000 - $80,000
=$100,000
Sales = Price pre visit * No of Visits
=$85*30000
= $255,000
Sales – Variable cost = Fixed costs + Net income
Variable costs = Sales – Fixed costs – Net income
=$225,000 - $100, 000 - $80,000
=$45,000
2.
Contribution = Fixed costs + Net income
Net income =$180,000 - $90,000
=$90,000
Sales – Variable costs = Fixed costs + Net income
(No of visits*Price pre visit) – (Variable costs per visit*No of visit)
=Fixed costs +Net income
(X*$85) – ($20*X) = $90,000 +90,000
X*$65 =$180,000
X =$180,000/65
=2769
Therefore no of visits =2769
3.
Contribution = Fixed costs + Net income
=$78,000+ $117,000
=$195,000
(No of visits*Price pre visit) – (Variable costs per visit*No of visit)
=Fixed costs +Net income
(3250*X) – ($35*X) =$195,000
3215*X =$195,000
X =$95,000/3215
=$29.5
Therefore price per visit is $29.5
4.
Sales – Variable costs = Fixed costs + Net income
$65*2000 - $40*2000 =$60,000 +Net income
Net income = $60,000- $50,000
=$10,000
Contribution = $60,000+$10,000
$70,000
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