DrBertin Performs a Certain Routine Surgical Procedure at Her Medical

question 77

Essay

Dr.Bertin performs a certain routine surgical procedure at her medical clinic.Her monthly fixed operating costs are $12,000,while her after-tax operating income is $8,000 when she performs 200 such procedures in a month.Dr.Bertin's before-tax operating income is subject to a marginal tax rate of 60%.
Required:
a)What is the margin of safety percentage for Dr.Bertin,assuming she performs 200 procedures?
b)What is the degree of operating leverage for Dr.Bertin,again assuming she performs 200 procedures?

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Definitions:

Target

In social influence, the person who is affected by a social influence attempt from the source. In aggression, the person toward whom an aggressive act is directed.

Attachments

Emotional bonds that form between individuals, such as between parents and children, influencing personal development and behavior throughout life.

Sense of Security

The feeling or perception of being safe, protected, or free from danger or anxiety.

Homogenous

Describing a group, material, or mixture that is uniform in composition or character; similar throughout.