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No Spacing Heading 1 Heading 2 Case Study Breakeven PS 218 income statement for its...

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Accounting

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No Spacing Heading 1 Heading 2 Case Study Breakeven PS 218 income statement for its most recent fiscal year follows: Revenues $20,000 Expenses 25,000 Net Loss ($5,000) The revenue in the income statement was obtained from 100 patients. A judgmental analysis by management of the individual expense accounts indicates that expenses can be categorized as $15,000 of fixed expenses and $10,000 of variable expenses. Questions 1. Given the cost-revenue relationships in the income PS 218 above or below its breakeven volume? 2. What is the average revenue per patient? 3. What is the average variable cost per patient? 4. What is the contribution margin per patient? 5. Assume that the cost-revenue relationship from the prior year will hold in the current year. Use the following formula for breakeven volume. (Breakeven - Total Fixed Costs/(Unit revenue-Unit variable cost). What is the likely breakeven volume of patients

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