Cost Accounting
1) Ford Tops manufactures hats for baseball teams. Ford has fixed costs of $89,700 per quarter and sells each hat for $46. If the variable cost per hat is $41.40, how many hats must Ford sell each quarter to break even?
2) The Cobb Clinic treats walk-in patients for various illnesses. The management accountant has estimated that the clinic has $5,830 in monthly fixed costs in addition to a $33 cost per patient visit. If the charge is $55 per visit, how many visits per month does the clinic need to break even?