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HSA 525 Problems

30/03/2020 Client: jessical Deadline: 2 Day

Week 4 Homework


Chapter 7: 7-1, 7-2, 7-3, & 7-4


Chapter 8: 8-1, 8-2, 8-3, & 8-4




7.1


Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are relevant data estimates:


Variable cost per visit $ 5.00


Annual direct fixed costs $500,000


Annual overhead allocation $ 50,000

 Expected annual utilization 10,000


What per-visit price must be set for the service to break even? To earn an annual profit of $100,000?

Repeat Part a, but assume that the variable cost per visit is $10.

Return to the data given in the problem. Again repeat Part a, but

 assume that direct fixed costs are $1,000,000.

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