Answered: Givens: Situation Price Quantity Total…

Givens: Situation Price Quantity Total Fixed Cost Variable Cost Per Unit Situation 1 ? 2,300 $180,000 $80 Situation 2 $250 ? $180,000 $80 Situation 3 $250 2,300 $80 Situation 4 $250 2,300 $180,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Question

The following table contains selected data concerning the operation of the MHA Medical Center. Use the break-even formula and fill the missing information.

Givens:
Situation
Price
Quantity
Total Fixed Cost
Variable Cost Per Unit
Situation 1
2,300
$180,000
$80
Situation 2
$250
$180,000
$80
Situation 3
$250
2,300
?
$80
Situation 4
$250
2,300
$180,000
?
1) Break-even price (Situation 1)
Show your calculation:

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