Response to the following problem:
Calculating break-even and graphing. The North Kingstown Cancer infusion therapy division expects tremendous growth over the next year and is projecting the following cost and rate structure for the service. Revenue $750 per patient Costs: Rent $3,600 per month Staff $195,000 per month Leases $10,000 per month Other fixed costs $20,000 per month Pharmaceuticals $500 per patient Intravenous supplies $25 per patient Other patient supplies $25 per patient
a. What volume of patients per month will it take for the center to break even?
b. What is the break-even point in dollars?
c. If the clinic needs to make a profit of $75,000 per month, what is the new break-even point in volume per month?
d. If the clinic needs to make a profit of $75,000 per month, what is the new break-even point in revenue?