After the acquisition, the good doctor was presented by his Finance Manager the following costs in...

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Finance

After the acquisition, the good doctor was presented by hisFinance Manager the following costs in performing a particularprocedure using the equipment:

4.1.      Share in the monthlysalaries of the Adminstaff                   $20,000

4.2.      Share in maintenanceCosts                                                   $10,000

4.3.      Share in other monthlyoverheadcosts                                 $130,000

4.4.      Supplies, medicationneeded in theprocedure                     $15,000

Assuming the procedure’s price is pegged at $20,000, determinethe needed total number of patients per month to break even. Assumea net income of $150,000 per month is desired, how many proceduresmust be done to accomplish this? How would the picture lookassuming the cost of supplies and medication from the procedureincreases to $22,000.

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Answer 1 Fixed cost Share in the monthly salaries of the Admin staff Share in maintenance Costs Share in other monthly overhead costs 20000 10000 130000 160000 Variable cost per    See Answer
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