Assume that managers of IDC Hospital are setting the price on a new outpatient service. Here are relevant data estimates:

Variable cost per visit                         $28.50

Annual Direct Fixed Costs                 $850,000

Annual Overhead Allocation              $225,000

Expected Annual Utilization              76,000 visits

A. 1. What per visit price must be set for the service to breakeven?

2. To earn an annual profit of $75,000?

B. Repeat Part a, but assume that the variable cost per visit is $30.

C. Return to the original data given in the problem. Again repeat Part a, but assume that direct fixed costs are $750,000.

D. Repeat Part a assuming both a $30 variable cost and $750,000 in direct fixed costs.