The North Kingstown Cancer Infusion expects tremendous growthover the next year and is pro
The North Kingstown Cancer Infusion expects tremendous growthover the next year and is projecting the following cost and ratestructure for the service. Revenues are $750 per patient. Rent is$3600 per month; staff cost is $195,000 per month; leases are$10,000 per month; other fixed costs are $20,000 per month;pharmaceuticals are $500 per patient; intravenous supplies are $25per patient; and other patient supplies are $25 per patient. Showyour work.
a. What volume of patients per month will it take forthe center to breakeven?
b. If the center needs to make a profit of $75,000 permonth, what is the new volume per month?