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Accounting

Problem:

ABC Medical Center has cardiology equipment with fixed depreciation costs of $150,000 per year. Variable costs per patient are $200. Using this information, calculate the following:

(a) Full and average cost at patient volume levels of 100, 500 and 1500.

(b) Blue Cross wishes to contract for 500 procedures at a price of $350 each.

Required:

Question: Assuming fixed costs have been covered, and capacity exists, calculate the incremental profit for 700 additional patients.

Note: Please provide reasons to support your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165679

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