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Calculating the Contribution Margin Greenside Clinic has revenue totaling $3,500,000. The clinic has costs totaling...

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Finance

Calculating the Contribution Margin

Greenside Clinic has revenue totaling $3,500,000. The clinic has costs totaling $3,450,000. Of this amount, 40 percent is variable cost and 60 percent is fixed cost.

Required

Compute the contribution margin for Greenside Clinic.

Amount

Revenue ________

Less variable cost ________

Contribution margin ________

Less fixed cost ______

Operating income ________

2. Using the same format, compute Units-of-Service Depreciation using adjusted assumptions as follows:

Cost to be depreciated = $50,000

Salvage value = $5,000

Total units of service = 10,000

Units of service per year: Year 1= 2,200; Year 2=2,100; Year 3=2,300; Year 4=2,200; Year 5=1,200

Units-of-Service (Units-of-Production) Depreciation
Cost (to be Depreciated) Units-of-Service per Year x Depreciation per Unit Annual Depreciation Expense Accumulated Depreciation (Reserve for Depreciation) Net Remaining Undepreciated Cost (Net Book Value)
Year 1
Year 2
Year 3
Year 4
Year 5
Total Units

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