Variable cost per visit $5.

00 $10 $5 $10
Annual direct fixed cost $500,000 1,000,000 1,000,000
Annual overhead allocation $50,000
Expected annual utilization 10,000

Fixed cost $550,000 $550,000 $1,050,000 $1,050,000.00

Total variable cost $50,000.00 $100,000 $50,000.00 $100,000
Total cost $600,000 $650,000 $1,100,000 $1,150,000.00
Annual profit $700,000 $750,000 $1,200,000 $1,250,000.00
Per visit price $70 $75 $120 $125.00