Breakeven Analysis of a New Medical Service for Elderly Patients

Multiple Choice

Breakeven analysis of a new medical service for elderly patients shows that 900 units of service are required to break even. At that volume, fixed costs are half the total costs. The predicted volume of service is 800 units. Which of the following is a realistic choice that will make the new medical service profitable?

A) Reduce the variable cost for the service.
B) Increase the charge for the service.
C) Increase volume by 20% from reducing the charge by 10%.
D) Remove indirect costs from the fixed cost calculation.