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Finance
This area deals with the planning, development, establishment, analysis, and assessment of financial management processes for an organization's capital, budget, accounting, and related reporting systems.
June 2010
Thursday June 10, 2010
The Break-Even Point
Posted by: MariaBethy Cash at 11:58AM EST on June 10, 2010

Memorial Hospital offers a screening test as a public service for $0.50 per test.  Variable costs per unit are $0.32.  Fixed costs are $ 43,200 per month for the department performing the test. It is the only test done by the special department.  The break-even point in this test is:

a.    240,000 test

b.    172,000 test

c.    138,000 test

d.    96,400 test

BEQ=    __TFC__   =  __43,200__   = 240,000 test

                       P- VC            0.50 – 0.32