1. Greenside Clinic has revenue totaling $3,500,000. The clinic has costs totali

Question

1. Greenside Clinic has revenue totaling $3,500,000. The clinic has costs totaling $3,450,000. Of this amount, 40% is variavle cost and 60% is fixed cost Compute the contribution margin for greenside clinic.

2. The mental health program for the community center has just completed its fiscal year end. The program director determines that his program has revenue for the year of $1,210,000. He believes his variable expense amounts to $205,000 and he knows his fixed expense amounts to $1,100,00.

a. compute the contribution margin for the community center mental health program.

b. what does the result tell you about the program.

Explanation / Answer

Hi,

Please find the answer as follows:

Part 1:

Contribution Margin

Part 2:

The result indicates that the community center is earning 83.06% (1005000/1210000*100) as contribution.

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

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