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If the contribution margin per unit is positive and no other additional costs will be incurred, then it is in the best financial interest of the organization to continue to provide additional units of that service , even the organization is not fully covering all its other costs otherwise not, this is called:
The range of activity over which total fixed costs or per unit variable cost (or both) does not vary is called:
The key factors that have contributed to the higher cost of health care include:
The formula to calculate the formula to calculate the future value of an annuity due is:
(Where FVFA is the Future value factor of an annuity, i is the interest rate and n is the number of time period of the investment)
Some of the primary instruments for health care organizations to invest in on a long-term basis include treasury bills, certificates of deposit, commercial paper and money market funds.
