CHAPTER 7: SERVICE LINE COSTING AND PRICING Homework Problem 3.1 Your hospital is considering offering...
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CHAPTER 7: SERVICE LINE COSTING AND PRICING Homework Problem 3.1 Your hospital is considering offering a new outpatient service. Using the following data, answer the questions below. RELEVANT DATA: Variable cost per visit Annual direct fixed costs Annual overhead allocation Expected utilization (visits $10 $675,000 $50,000 12,000 a What is the breakeven price? b. What price is needed to earn a profit of $100,000
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