Question

The Tamarisk Heritage Centre (a not-for-profit organization providing language and arts and crafts programs for children) received a lump-sum grant from the City of Moncton of $483,820 this year. The fixed costs of the Centre are expected to be $239,800. The average variable cost per child visit is expected to be $8.70, and the average fee collected per child visit is $3.80.What is the breakeven volume in patient visits? (Round answers to 0 decimal places, e.g. 5,125.)

Answer 1

48,939 patients

Step-by-step explanation:

Breakeven quantity = fixed cost / price – variable cost per unit

$239,800 / ( $8.70 - $3.80) = 48,939 patients