Answer the Following Questions Using the Information Below

question 53

Multiple Choice

Answer the following questions using the information below:
Dr. Charles Hunter, MD, performs a certain outpatient procedure for $1,000. His fixed costs are $20,000, while his variable costs are $500 per procedure. Dr. Hunter currently plans to perform 200 procedures this month.
-What is the breakeven point for the month assuming that Dr. Hunter plans to perform the procedure 200 times?

• A)40 times
• B)30 times
• C)20 times
• D)10 times

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Definitions:

Voluntary Petition

A document filed by an individual or business entity initiating bankruptcy proceedings under their own accord.

Chapter 7

A provision of the bankruptcy code that allows for liquidation of a debtor's assets to pay off creditors.

Involuntary

Occurring without an individual's consent or will.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the law across the country.