CMA Study Group

  • 1.  CVP Question - Help

    Posted 7 days ago
    A not-for-profit social agency provides home health care assistance to as many patients as possible. Its budgeted appropriation (X) for next year must cover fixed costs of $5 million, and the annual per-patient cost (Y) of its services. However, the agency is preparing for a possible 10% reduction in its appropriation that will lower the number of patients served from 5,000 to 4,000. The reduced appropriation and the annual per-patient cost equal
     
    Reduced
    Per-Patient
     
    Appropriation
     
    Annual Cost
     
    $9,000,000
    $1,000

    Not sure how to get the answer, any help is appreciated!

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    Bradley Kilbreth
    Student
    United States
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