George Washington University Solving Carlsbad Home Care Case Questions

Prepare the following case: Carlsbad Home Care

1. Identify the fixed and variable costs. Are there any step costs to consider? Remember to provide support for decision.

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2. What is the breakeven point? Show detailed analysis.

3. What assumptions were necessary in answering questions 1 and 2.

4. How can Mr. Blanchard achieve breakeven?

5. How does the capacity issue impact your analysis?

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