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Healthcare Finance
Assume that the managers of Fort Winston Hospital are setting the price on a new out- patient service. Here are the 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 visits a. What per visit price must be set for the service to break even? To earn an annual profit of $100,000? |
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