4-34. Memorial Hospital provides comprehensive physical exams. The charge per exam is $100 while the variable cost per exam is $65. Thirty percent of the patients that come for exams are private pay. They must pay the full charge. Seventy percent of the patients are covered by an insurance company that has an agreement with the clinic that reduces the charge by 20%. The clinic has $ 210,000 in fixed costs per year.

 

4-35.The fixed costs of running a fund- raising dinner for Meals for the homeless are $10,000 and the variable costs are $75 per attendee. The facility where the event is being held can accommodate 500 people.

1) If Meals charged $275 per ticket, how many people would have to attend the gala for the organization to break even on the event?

2) If Meals charged $300 per ticket, the contribution margin from each ticket sold would be:

 

3) If 500 people attend the event, how much does the organization have to charge each attendee to earn a profit of $100,000? (Assume costs from the original problem are still in effect.)

 

4-36. Millbridge Animal Protective Services (MAPS) is planning its spring awards dinner as a fund raising- event. It’s planning to charge each attendee $150. Feast Hall, the site of the dinner, will charge MAPS $5,000 for the use of its posh VIP ROOM AND $50 PER PLATE OF FOOD. The VIP room has a capacity of 180 people. Rocky Mount and the Tar Heels (one band) will provide the entertainment for their standard performance fee of $1,000 per night.

1) How many people would need to attend in order for MAPS to break even?

 

2) If MAPS SELLS 100 tickets for the dinner, what is the average cost to MAPS for each person with a ticket?

 

4-36. Millbridge Animal Protective Services (MAPS) is planning its spring awards dinner as a fund raising- event. It’s planning to charge each attendee $150. Feast Hall, the site of the dinner, will charge MAPS $5,000 for the use of its posh VIP ROOM AND $50 PER PLATE OF FOOD. The VIP room has a capacity of 180 people. Rocky Mount and the Tar Heels (one band) will provide the entertainment for their standard performance fee of $1,000 per night.

1) How many people would need to attend in order for MAPS to break even?

 

2) If MAPS SELLS 100 tickets for the dinner, what is the average cost to MAPS for each person with a ticket?

 

4-45.You are given the following information about WE-SAVE-UM animal rescue (WSU):

Number of dogs rescued and placed at WSU are 600 average length of stay for a dog is 10 days Daily cost to feed one dog per day 90 cents (.90) Number of veterinary visits per dog are 1.2 Cost per veterinary visit is $35

Cost of spay/neuter and transportation per dog rescued is $45

Cost of kennel and related equipment is $300,000 useful life of the kennel and related equipment is 20 years WSU uses straight-line depreciation Salvage value of the kennel and related equipment is $0.00

WSU has 3 fulltime employees. An executive director, who earns $40,000 per year, and evaluator/trainer who earns $30,000 per year and a kennel manager who earns $25,000. Fringe benefits are equal to 25% of each employee’s annual salary. WSU expects to place all of the dogs that it takes into the program by the last day of the fiscal year. It charges an adoption fee of $225.00 per dog. Experience has shown that 15% of the people elect to make an additional donation to WSU at the time of the adoption. Historically these extra donations have averaged $200. In addition, WSU has an active fundraising program and expects to raise $40,000 in donations during the fiscal year.

 

The executive director wants to know how many dogs she has to place next year to break even. Calculate WSU's break even.

 

4-45.You are given the following information about WE-SAVE-UM animal rescue (WSU):

Number of dogs rescued and placed at WSU are 600 average length of stay for a dog is 10 days Daily cost to feed one dog per day 90 cents (.90) Number of veterinary visits per dog are 1.2 Cost per veterinary visit is $35

Cost of spay/neuter and transportation per dog rescued is $45

Cost of kennel and related equipment is $300,000 useful life of the kennel and related equipment is 20 years WSU uses straight-line depreciation Salvage value of the kennel and related equipment is $0.00

WSU has 3 fulltime employees. An executive director, who earns $40,000 per year, and evaluator/trainer who earns $30,000 per year and a kennel manager who earns $25,000. Fringe benefits are equal to 25% of each employee’s annual salary. WSU expects to place all of the dogs that it takes into the program by the last day of the fiscal year. It charges an adoption fee of $225.00 per dog. Experience has shown that 15% of the people elect to make an additional donation to WSU at the time of the adoption. Historically these extra donations have averaged $200. In addition, WSU has an active fundraising program and expects to raise $40,000 in donations during the fiscal year.

 

The executive director wants to know how many dogs she has to place next year to break even. Calculate WSU's break even.

 

 

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