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# Assignment Exercise 72 Calculating the Contribution Margin The Mental Health program for the Community Center has just completed its fiscal year end The Program Director determines that his program

Assignment Exercise 7–2: Calculating the Contribution Margin The Mental Health program for the Community Center has just completed its fiscal year end. The Program Director determines that his program has revenue for the year of \$1,210,000. He believes his variable expense amounts to \$205,000 and he knows his fixed expense amounts to \$1,100,000. Required
1. Compute the contribution margin for the Community Center Mental Health program.
2. What does the result tell you about the program?

Assignment Exercise 7–3: Calculating the PV Ratio and the CVP Ratio
Use the same assumptions for the Greenside Clinic as in Practice Exercise 7–II. One more assumption will be added: the Clinic had 35,000 visits. Required
1. In addition to the contribution margin figures already computed, now compute the PV Ratio
(also known as CM Ratio).
2. Add another column to your worksheet and compute the clinic’s per-visit revenue and costs.
3. Create a Cost-Volume-Profit chart. Refer to the chapter text along with Figure 7–6.

Amount .......Percent ................Per Visit

Revenue

Less Variable Cost

Contribution Margin

Less Fixed Cost

Operating Profit (loss)

Apr 15 2020 View more View Less