Ten physicians have just completed their residencies in internal medicine and are considering opening a group practice. They estimate the practice would have the following annual cost structure: You must show your calculation to receive credit.- **Annual fixed costs:** $750,000- **Variable cost per visit:** $50If volume in the first year is estimated to be 10,000 visits, what price per visit must be set if the practice wants to make an annual profit of $160,000?

The Break-even point is the formula used by the management to determine desired minimum sales to be…

Answered: Ten physicians have just completed…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Please help me with show all calculation thanku
Problem 9) An entrepreneur is considering opening a coffee shop in downtown Pasadena. The building that he is considering will have a monthly lease payment of $3200 and basic utility costs of $600-per month. Two employees will be hired at $10.00/hour/employee (including overhead and benefits). Each employee will work an average of 170 hours per month. The average revenue per customer is estimated at $7.00. The variable cost of serving each customer is estimated at $2.00. (a) Calculate how many customers per month it will take for the coffee shop owner to breakeven. (b) How many customers would need to be served per month to achieve a monthly profit of $5,000?
Joan believes most locations could generate $ 37,000 in monthly sales. Is franchising a good idea for Joan if franchisees want a minimum monthly operation income (target profit) of $14,500? Formula to use : Calculations: =S2 required Sales Yes, it is a good idea since required sales to hit the target of $14,500 is less than the expected month sales of $37,000
1) Margin at the Kiosk You rent a kiosk in the mall for $300 a month and use it to sell T-shirts with college logos from colleges and universities all over the world. You sell each T-shirt for $25, and your cost for each shirt is $15. You also pay your salesperson a commission of $0.50 per T-shirt sold in addition to a salary of $400 per month. Construct a contribution margin income statement for two different months: in one month, assume 100 T-shirts are sold, and in the other, assume 200 T-shirts are sold.
Problem 1c: Consider the following information for Rosebud Lane Hospital. The number of admissions for the year are expected to equal 1000, but could vary from 750 to 1250. Rosebud's fee-for-service is $2,000 under a prospective payment system. Under a capitation reimbursement system, Rosebud must cover 1000 patients at a capitation payment of $2,000. Rosebud's annual fixed costs are $500,000 and it variable cost per admission is $1,500. 1c. Calculate Rosebud's net profit under the Fee For Service Reimbursement method if admissions are 1250. (Answer to the nearest dollar. Do not include the dollar sign in your answer.) 1d. Calculate Rosebud's net profit under Capitation if admissions are 1250. (Answer to the nearest dollar. Do not include the dollar sign in your answer.)
Assume that a prospect is interested in purchasing 4 tickets in a 20-game season ticket package. The prospect estimated that the sales force can close 20% of the deals after attending a game with an average of 1.5 transactions per customer. On average, those sales will be approximately $1,500. Assuming the cost of the package is $10,000, calculate the return on investment for the business. would like you to identify the following: • Total number of tickets in the ticket package? • Assuming the prospect will send 1 sales person to each game, how many tickets will they use in total for their potential customers? • How many customers will they gain using 20% as a conversion rate ? • Total number of transactions from customers ? • Total Revenue Generated ? • Return on Investment ? Explain how you arrived at your final numbers.
You run a hospital with 100 rooms. Fixed daily cost is $953.00 which includes staff salary, property charges, maintenance etc. Variable cost per room is $12.00 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $43.00 per room per day. You sold 44.00 rooms today, how much profit/loss did you earn for today.
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Please answer the 2 questions below
Flavor Enterprises has been approached about providing a new service to its clients. The company will bill clients $160 per hour; the related hourly variable and fixed operating costs will be $70 and $18, respectively. If all employees are currently working at full capacity on other client matters and average hourly profit margin is $88, should the company accept this new services or not, use calculation to support your answer.
Robert's Repair Shop has a monthly target profit of $19,500. Variable costs are 75% of sales, and monthly fixed costs are $13,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Robert's margin of safety as a percentage of target sales. 3. Why would Robert's management want to know the shop's margin of safety? ... Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Select the labels and enter the amounts to compute Robert's Repair Shop's monthly margin of safety in dollars. Target sales in dollars Breakeven sales in dollars Margin of safety in dollars
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