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
    Annual Cost

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

    Bradley Kilbreth
    United States