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?
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