runlemmingsrun
New member
- Joined
- Sep 11, 2006
- Messages
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R Squared is a mobile diagnostic imaging company that performs MRI scans of patients at hospitals and clinics that cannot afford their own scanners. General Hospital has contacted R Squared regarding a contract for services. Accountants at R Squared have calculated the variable cost per scan at $1,200. The fixed cost per month is $90,000 (Cost of MRI lease payments and service). The accepted price charged in the community for an MRI scan is $2,100.
R Squared must charge General Hospital $200 less than the community price in order to get the contract.
1. Approximately how many patients must R Squared scan at General Hospital to break even for a given month?
2. Approximately how many patients will General Hospital have to guarantee for R Squared to make a monthly profit of $10,000?
R Squared must charge General Hospital $200 less than the community price in order to get the contract.
1. Approximately how many patients must R Squared scan at General Hospital to break even for a given month?
2. Approximately how many patients will General Hospital have to guarantee for R Squared to make a monthly profit of $10,000?
