1, Assuming that VMD MIC competitors have an accurate costing system, what are the characteristics of jobs...
Fantastic news! We've Found the answer you've been seeking!
Question:
1, Assuming that VMD MIC competitors have an accurate costing system, what are the characteristics of jobs (services) that VMD MIC is likely to win vs. lose to their competitors? Provide a graph illustrating the mechanism at play.
2, Assuming that technical complexity is the true driver of overhead costs, what are the characteristics of the jobs that VMD MIC will win vs. lose to its competitors? Provide a graph
3, Under what conditions the current costing system might allow VMD MIC to record positive profits? illustrating the mechanism at play.
Transcribed Image Text:
VMD Medical Imaging Center It is late on a January Friday night and President Ron Becks just decided to adjourn the first staff meeting of 2016 at VMD Medical Imaging Center. The morale of the senior management team could certainly use a boost. Despite having recorded a profit in 2015, the discussion about the forecast for the upcoming year had become increasingly tense. Christine Widemeier, VP of Sales, had expressed serious concerns about the trend of the demand for VMD's services. If they wanted to maintain their usual margins, sales prices needed to be increased in 2016 and that was going to hurt. Their major client had already threatened to find an alternative provider, and there was a long line of low-cost competitors ready to jump in. Widemeier's team had made every possible effort to sustain their client's satisfaction, but she wasn't sure that the quality of the relationship would be enough to retain them going forward if prices were to be increased again this year. Something needed to be done to contain costs in production, and quickly. Mike Jankoski, Director of Operations, reacted quite defensively to Widemeier's statement. In his opinion, their processes were as lean as they could be, their technology was better than it had ever been to date, and during the past year his team had achieved many significant efficiency improvements. He did not feel that the root cause of the increased costs were to be searched in operations. Jankoski's view was that his department had been charged with so many costs that were not under his control, and he questioned the appropriateness of the allocations built in the costing system. CFO Laura Gleason did not appreciate Jankoski's reaction and ensured the team that costs were accounted for appropriately. Gleason, instead, pointed to a recent purchase of a new, expensive, state-of-the-art 3D MRI machine, which had been justified as a source of competitive advantage. Due to its current low utilization, she wasn't sure it had been a wise investment, since it had insofar failed to generate sufficient returns to cover the expenses. Before the conversation could get out of hand, Becks decided to send everybody home and suggested to regroup first thing on Monday, hoping that the weekend would restore the collaborative spirit that he was used to seeing in his management team. Medical Imaging Services VMD Medical Imaging Center (VMD MIC) operates as a local, independent medical imaging center. The Center offers a wide array of medical imaging applications for the needs of its clients, including projectional radiographs (commonly known as x-rays), fluoroscopies, computerized axial tomographs (CAT), and magnetic resonance imaging (MRI) scans. These various forms of medical imaging tests differ widely in function and cost. VMD Medical Imaging Center It is late on a January Friday night and President Ron Becks just decided to adjourn the first staff meeting of 2016 at VMD Medical Imaging Center. The morale of the senior management team could certainly use a boost. Despite having recorded a profit in 2015, the discussion about the forecast for the upcoming year had become increasingly tense. Christine Widemeier, VP of Sales, had expressed serious concerns about the trend of the demand for VMD's services. If they wanted to maintain their usual margins, sales prices needed to be increased in 2016 and that was going to hurt. Their major client had already threatened to find an alternative provider, and there was a long line of low-cost competitors ready to jump in. Widemeier's team had made every possible effort to sustain their client's satisfaction, but she wasn't sure that the quality of the relationship would be enough to retain them going forward if prices were to be increased again this year. Something needed to be done to contain costs in production, and quickly. Mike Jankoski, Director of Operations, reacted quite defensively to Widemeier's statement. In his opinion, their processes were as lean as they could be, their technology was better than it had ever been to date, and during the past year his team had achieved many significant efficiency improvements. He did not feel that the root cause of the increased costs were to be searched in operations. Jankoski's view was that his department had been charged with so many costs that were not under his control, and he questioned the appropriateness of the allocations built in the costing system. CFO Laura Gleason did not appreciate Jankoski's reaction and ensured the team that costs were accounted for appropriately. Gleason, instead, pointed to a recent purchase of a new, expensive, state-of-the-art 3D MRI machine, which had been justified as a source of competitive advantage. Due to its current low utilization, she wasn't sure it had been a wise investment, since it had insofar failed to generate sufficient returns to cover the expenses. Before the conversation could get out of hand, Becks decided to send everybody home and suggested to regroup first thing on Monday, hoping that the weekend would restore the collaborative spirit that he was used to seeing in his management team. Medical Imaging Services VMD Medical Imaging Center (VMD MIC) operates as a local, independent medical imaging center. The Center offers a wide array of medical imaging applications for the needs of its clients, including projectional radiographs (commonly known as x-rays), fluoroscopies, computerized axial tomographs (CAT), and magnetic resonance imaging (MRI) scans. These various forms of medical imaging tests differ widely in function and cost.
Expert Answer:
Answer rating: 100% (QA)
DETAILS GIVEN IN QUESTION VMD MEDICAL IMAGING CENTRE CURRENTLY ABSORBS OH AS A OF LABOR THERE ARE TW... View the full answer
Related Book For
Launching New Ventures An Entrepreneurial Approach
ISBN: 978-0547014562
5th Edition
Authors: Kathleen R. Allen
Posted Date:
Students also viewed these general management questions
-
What are the characteristics of positive conflicts?
-
What are the characteristics of an effective business model?
-
What are the characteristics of an effective brand name?
-
This scenario is based on thefollowing information: Jo King, aged 58 provided the following information for the year ended 30 June 2023. Table2 - Jo's receipts Receipts $ Net salary (PAYG tax...
-
A recent news release published by Ars Technica, LLD presented the results of a study concerning the world and domestic market share for the major manufacturers of personal computers (PCs). The file...
-
Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines are served by three operating departments which are necessary for providing the two...
-
The observation deck of the Washington Monument is \(152 \mathrm{~m}\) above the ground. How many king-sized candy bars, each supplying 1. 3 MJ of source energy, must an \(80-\mathrm{kg}\) man...
-
The Blue Roof Inn overbooks two rooms a night. Room rates run $100 a night but cost only $30 to maintain Bumped customers are sent to a nearby hotel for $80 a night. What is the cost of overbooking?...
-
How do you calculate a project's estimated net cash flow stream and what is the significance of it?
-
Kofi Allon, who is 32 years old and single, is employed as a technical consultant for a large electronics distributor. He lives at 678 Birch Street, LaMesa, CA 91941. Kofi's Social Security number is...
-
assuming that a businesstype activity was involved 1 purchased a capital asset with cash 8000 2 issued 1000000 of bonds at par and received cash to finance construction on a building
-
what are the advantages/importance of having an outstanding visual content in promoting unpopular or rising singer/artist in Instagram?
-
If a virtual image is formed 14.5 cm along the principal axis from a convex mirror of focal length 19.5 cm, how far is the object from the mirror?
-
A helicopter, starting from rest, accelerates straight up from the roof of a hospital. The lifting force does work in raising the helicopter. An 910-kg helicopter rises from rest to a speed of 12.5...
-
Create common size income statements and perform a basic ratio analysis of the two companies for fiscal year 2021, which is the fiscal year ended on Jan. 29, 2022/Jan. 28, 2022. (Note: fiscal year...
-
What are some of the Internet-based tools available to support a strategic planning process for a criminal justice organization? Which do you believe would work best with a criminal justice...
-
Train A covers 240 miles in the same time train B covers 180 miles. If the average speed of train A is 20mph more than that of train B, then what is the average speed of train B ? 2 answers
-
Write a function that reads a Float24_t value: Float24_t float24_read(void) A legitimate float24 value string is of the form: "mantissabexponent" where the mantissa (m) and the exponent (e) may have...
-
Define the term entrepreneurship.
-
What is the role of angels as a source of new venture funding?
-
How might the business plan change if the reader were an investor versus a potential management hire?
-
A cylinder of mass \(M\), moment of inertia \(I\) about the cylindrical axis and radius \(R\) rolls on a horizontal surface without slipping. (a) Express the no-slip constraint in differential form....
-
A bead of mass \(m\) is threaded without friction on a massless wire hoop of radius \(R\) that is forced to oscillate vertically in a fixed vertical plane at angular frequency \(\omega\) and with...
-
A block of mass \(m\) slides without friction on a larger block of mass \(M\) and is attached to a pin in this block by a massless spring with spring constant \(k\). All motion is in one dimension....
Study smarter with the SolutionInn App