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Zenith Dental Clinic has fixed costs of $180,000. After 28,000 visits, its fixed costs increase by $25,000 because of the need to hire another hygienist. Variable costs are $6 per visit. If the clinic is budgeting for 24,000 visits, what is the average cost per visit? a. $13.25 b. $10.50 c. $8.25 d. None of the above

Zenith Dental Clinic has fixed costs of $180,000. After 28,000 visits, its fixed costs increase by $25,000 because of the need to hire another hygienist. Variable costs are $6 per visit. If the clinic is budgeting for 24,000 visits, what is the average cost per visit? a. $13.25 b. $10.50 c. $8.25 d. None of the above

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20E
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Zenith Dental Clinic has fixed costs of $180,000. After 28,000 visits, its fixed costs increase by $25,000 because of the need to hire another hygienist. Variable costs are $6 per visit. If the clinic is budgeting for 24,000 visits, what is the average cost per visit? a. $13.25 b. $10.50 c. $8.25 d. None of the above
Transcribed Image Text:Zenith Dental Clinic has fixed costs of $180,000. After 28,000 visits, its fixed costs increase by $25,000 because of the need to hire another hygienist. Variable costs are $6 per visit. If the clinic is budgeting for 24,000 visits, what is the average cost per visit? a. $13.25 b. $10.50 c. $8.25 d. None of the above
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