Explain costs and ethics in breakeven analysis


Discussion:Costs vs. Ethics when Applying Breakeven Analysis

An independent family clinic located in a poor neighborhood struggles to reach its breakeven point each month. At their current visit levels, they need to collect an average of $100 per patient visit in order to breakeven each month. They have asked for your consultation on some options that could help them remain profitable and not have to shut down, even if they have tough decisions to make. What advice would you offer them?
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