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    MeGarrett's Avatar
    MeGarrett Posts: 7, Reputation: 1
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    #1

    Aug 12, 2010, 02:03 PM
    What per visit price is set for a service to break even?
    Assume that the managers of a hospital are setting the price on a new outpatient service. Here are relevant that estimates:

    Variable cost per visit $5.00
    Annual direct fixed costs $500,000
    Annual over head allocation $50,000
    Expected annual utilization 10,000 visits

    What per visit price must be set for the service to break even? To earn an annual profit of $100,000?
    J_9's Avatar
    J_9 Posts: 40,298, Reputation: 5646
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    #2

    Aug 12, 2010, 02:10 PM

    I'm sorry, but we do not do homework here.
    bleusong52's Avatar
    bleusong52 Posts: 239, Reputation: 46
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    #3

    Aug 17, 2010, 03:52 PM

    Figure it out - you are only charging $5.00 per visit and yet you must collect at least $550,000.00 a year to meet your costs. You do the math.
    MeGarrett's Avatar
    MeGarrett Posts: 7, Reputation: 1
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    #4

    Aug 19, 2010, 12:10 AM

    For a not-for-profit clinic financial statement, how would I figure out the total revenues if the total expences are $330,000 and at the end of the year the assets were $110,000, liabilities were 55,000 and equity was 45,000?

    I need to know the total revenues of this question.
    J_9's Avatar
    J_9 Posts: 40,298, Reputation: 5646
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    #5

    Aug 19, 2010, 12:18 AM

    What do you THINK the revenues are? Remember, we are only here to help you, not give you the answer.

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