Dr. Charles Davis, MD, performs a certain outpatient procedure for $1,000. His fixed costs are $20,000,...
Dr. Charles Davis, MD, performs a certain outpatient procedure for $1,000. His fixed costs are $20,000, while his variable costs are $500 per procedure. Dr. Davis currently plans to perform 200 procedures this month. What is the breakeven point for the month assuming that Dr. Davis plans to perform the procedure 200 times?
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40 times |
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30 times |
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20 times |
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10 times |
Homework Answers
Break-Even Point (Unit) = Fixed cost / (Revenue per unit- variable cost)
So, the fixed cost is $ 20,000
Revenue per unit is $ 1,000
Variable cost per unit is $ 500
Break Even Point will be = $20,000/($1,000-$500)
= $20,000/$500
= 40 times
The break even point for Dr. Charles Davis is 40times
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Dr. Charles Davis, MD, performs a certain outpatient procedure
for $1,000. His fixed costs are $20,000,...
Dr. Charles Davis, MD, performs a certain outpatient procedure for $1,000. His fixed costs are $20,000,...
Dr. Charles Davis, MD, performs a certain outpatient procedure for $1,000. His fixed costs are $20,000, while his variable costs are $500 per procedure. Dr. Davis currently plans to perform 200 procedures this month. What is the budgeted profit (operating income) for the month assuming that Dr. Davis plans to perform the procedure 200 times? $200,000 $100,000 $80,000 $40,000
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