for providing services to a defined population. Capitation payments are expressed as some dollar amount per member per month‚ where the word "member" typically means enrollee in some managed care plan. Under fee-for-service‚ all volumes less than breakeven
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50 Total Fixed Costs: $ 9.50 $ 570‚000 Operating Income: $ 150‚000 (2) Waverly’s Breakeven Point in Units Sale Price per Unit: $36 Variable Costs per Unit: $24 Contribution Margin per Unit: $12 Fixed Costs: $570‚000 (Price * Quantity)-(Variable Cost*Quantity) –Fixed Costs=0 36x-24x-570‚000=0 12x=570‚000 x=47‚500 units For Waverly to breakeven‚ the company would have to produce 47‚500 units. b. What cost per unit is relevant for setting a minimum
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"Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from the tri-state regions to buy from Hallstead’s extensive diamond collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best. Even though the principal retail shopping areas shifted two blocks west‚ Hallstead’s reputation and selection still brought in customers. In 1999 however‚ sales became stagnate
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Accounting 3200 Midterm Exam‚ Term 3 - Chapters 1 - 5 and 17 1‚7‚ Questions #1‚ 6 and 9 are SIX points each. Questions #2 and 7 are FIVE points each. Question #3 is TEN points. Questions #4 and 5 are EIGHT points each. Question #8 is TWELVE points. Question #10 is SIXTEEN points. Question #11 is EIGHTEEN points. BE SURE TO SHOW ALL SUPPORTING COMPUTATIONS. NO COMPUTATIONS = NO POINTS IF ANSWER IS WRONG. Version: HMT03midon 1) Describe management accounting and financial accounting. Managerial
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Case Analysis—Warner-Lambert Ireland: Niconil Executive Summary Warner-Lambert‚ an international pharmaceutical and consumer products company in Ireland‚ planned to launch a new product in 1990 called Niconil which was made for those people who would like to quit smoking. Niconil were different than the existing smoking cessation products in the market. Managers of the company believed that Niconil had many competitive advantages over its competitors and were very confident of the product. But
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Discount Rate Table 2: Breakeven analysis Results and Analysis (and value added questions) In 1971 Lockheed estimated a breakeven point somewhere between 195 and 205 aircraft even though they had only received 103 solid orders. Based on the numbers seen in table 3‚ at a unit price of $14 million the breakeven point is well beyond those numbers. With a production price of $12.5 million‚ as seen with 300 orders‚ NPV would be -$312.68 million. This does not reflect a breakeven point. Based on my
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any positive volume‚ the greater the volume‚ the higher the revenue. Under capitation (Figure 5.5)‚ assuming a fixed number of enrollees‚ total revenues are fixed independently of volume‚ and hence the revenue line is horizontal. On each graph‚ breakeven occurs when total revenues equal total costs. Although the graphs are somewhat similar in general appearance‚ there is a profound difference in how profits and losses occur. First‚ consider fee-for-service. All
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Utilization of capacity Breakeven Point (Original Sales) Aggregate A 2‚000‚000 1‚500‚000 600‚000 $7.20 $10.00 10‚800‚000 6‚000‚000 4.50 7.50 6‚750‚000 4‚500‚000 2‚970‚000 960‚000 1‚080‚000 540‚000 0.625 0.375 75% 0.75 0.25 30% B 400‚000 $9.00 3‚600‚000.000 3.75 1‚500‚000 1‚560‚000 540‚000 0.42 0.58 20% C 500‚000 $2.40 1‚200‚000 1.50 750‚000 450‚000 0 0.625 0.375 25% 2. On the basis of French’s revised information‚ what does next year look like: a. What is the break-even point? Breakeven Point (Reallocated
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that your production equals your sales in units‚ create a proforma income statement (contribution method). What is the total profit? 6. What price results in breakeven ($0 profit) if you sold and produced 12‚000 CMI pads? 7. At a price of $400‚ how many units must be sold to breakeven at the 9‚000 unit production rate? 8. For question #7 above‚ at a price of $400‚ what is the market share required to
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department. 2. From profit‚ in Lakeside Hospital‚ dialysis unit used to be a profitable unit‚ since it decreased its capacity by 50 percent‚ we have to calculate the breakeven‚ overhead‚ and total costs and revenue to see whether it’s still reasonable to continue operating the dialysis unit. Key numbers and method of analysis: 1. Breakeven: We suppose the water usage‚ medical supplies‚ and purchased lab services as variable cost; employee’s salaries‚ benefits‚ and equipment depreciation as fixed cost
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