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Problem:

Super Clinics offers one service that has the following annual cost and volume estimates: variable cost per visit = $10, annual direct fixed costs = $50,000, allocation of overhead costs = $20,000, and expected volume = 1,000 visits.

Required:

Question 1: What price per visit must be set if the clinic wants to make an annual profit of $10,000 on the service? Illustrate in detail clarify all workings.

$70

$80

$90

$100

$110

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91146808

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