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(A) (B) (C) (D) (E) (F) Price number contribution NET per variable of margin fix

ID: 2422143 • Letter: #

Question

(A)                     (B)                          (C)                   (D)                       (E)                                               (F)

Price                                                 number           contribution                                                              NET

per                     variable                   of                    margin                  fixed                                            Income

visit                    cost                        visits           [A-B]xC]                    costs                                         [D-E]

$90                   [2.a]                       $4,000         $200,000                 [2.b]                                             $90,000

$85                   $35                        [2.c]              $150,000                $75,000                                        [2.d]

[2.e]                  $55                      $4,500            [2.f]                         $78,000                                        $120,000

$50                   $60                      $2,000            [2.g]                        $60,000                                         [2.h]

Fill in the missing data, which are [2.a] through [2.h] in the table. This problem is a type of variation on break-even that includes net income.

Explanation / Answer

Answer:

(A)       (B)              (C)                (D)                    (E)              (F) Price per visit variable cost number of visits contribution margin fixed costs NET Income 90 40 4000 200000 110000 90000 85 35 3000 150000 75000 75000 99 55 4500 198000 78000 120000 50 60 2000 -20000 60000 -80000