Calculating the Contribution Margin Greenside Clinic has revenue totaling $3,500,000. The clinic has costs totaling...
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Finance
Calculating the Contribution Margin
Greenside Clinic has revenue totaling $3,500,000. The clinic has costs totaling $3,450,000. Of this amount, 40 percent is variable cost and 60 percent is fixed cost.
Required
Compute the contribution margin for Greenside Clinic.
Amount
Revenue ________
Less variable cost ________
Contribution margin ________
Less fixed cost ______
Operating income ________
2. Using the same format, compute Units-of-Service Depreciation using adjusted assumptions as follows:
Cost to be depreciated = $50,000
Salvage value = $5,000
Total units of service = 10,000
Units of service per year: Year 1= 2,200; Year 2=2,100; Year 3=2,300; Year 4=2,200; Year 5=1,200
