Assume that Internal Medicine had the following activity: Actual Number of Visits: 4500 Charge per visit:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assume that Internal Medicine had the following activity: Actual Number of Visits: 4500 Charge per visit: $60 Variable Cost per visit: $40 Total Fixed Cost: $60,000 Calculate the contribution margin and operating income that Internal Medical will contribute to the practice. Contribution Margin: Operating Income: 3. If Internal Medicine sees two times more patients than General Surgery, why is their contribution margin so much less? Assume that Internal Medicine had the following activity: Actual Number of Visits: 4500 Charge per visit: $60 Variable Cost per visit: $40 Total Fixed Cost: $60,000 Calculate the contribution margin and operating income that Internal Medical will contribute to the practice. Contribution Margin: Operating Income: 3. If Internal Medicine sees two times more patients than General Surgery, why is their contribution margin so much less?
Expert Answer:
Answer rating: 100% (QA)
To calculate the contribution margin for Internal Medicine we first need to calculate the total reve... View the full answer
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Posted Date:
Students also viewed these finance questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Googles ease of use and superior search results have propelled the search engine to its num- ber one status, ousting the early dominance of competitors such as WebCrawler and Infos- eek. Even later...
-
Simplify the following expressions according to the commutative law: a. b. A B + A C + B A c. (L M N)(A B)(C D E)(M N L) d. F (K + R) + S V + W + V S + W + (R + K) F A.B + B.A + C.D.E + C.DE + E.T.D
-
A 160-kg utility pole is used to support at C the end of an electric wire. The tension in the wire is 540 N, and the wire forms an angle of 15° with the horizontal at C. Determine the largest and...
-
Mensa Mountaineering Company (MMC) provides guided mountain climbing expeditions in the Rocky Mountains. Its only major expense is guide salaries; it pays each guide \($4,800\) per climbing...
-
A major purpose of the Information Systems Audit and Control Foundation's publication called COBIT: Control Objectives for Information and Related Technologies is: a. To establish a basis for a...
-
Continental Insurance Co. issued a policy to cover shipments by Oakley Fertilizer, Inc. Oakley agreed to ship three thousand tons of fertilizer by barge to Ameropa North America in Caruthersville,...
-
Esfandairi Enterprises is considering a new three - year expansion project that requires an initial fixed asset investment of $ 2 , 4 0 0 , 0 0 0 . The fixed asset will be depreciated straight - line...
-
Biome Startup, Inc. (BS) is dedicated to improving the world's soil health one farm at a time. BS implements AI technology in the science of soil management and crop production to create a virtual...
-
Assuming you were employed as a risk analyst for a US investment bank, On 31 August 2022, You selected four listed companies (stock A, stock B, stock C, stock D) from S&P 500 index for the bank, The...
-
On January 1, 2020, ACE Partnership entered into liquidation. The partners' profit sharing and capital balances on this date were as P1,250,000; C. (35%), P2,700,000; E (40%), follows: A (25%),...
-
Investigate the evolutionary origins and adaptive significance of altruistic behaviors in social organisms, considering theories such as kin selection, reciprocal altruism, and inclusive fitness to...
-
The stock of Big Joe's has a beta of 1 . 3 8 and an expected return of 1 2 . 0 0 percent. The risk - free rate of return Is 4 . 5 percent. What is the expected return on the market?
-
11. Chaoprava Av is an investment advisor for high-net-worth individuals. One of her clients, Schuylkill Cy, plans to contribute four level annual payments of $76,500 starting in 10 years. Av...
-
at the beginning of the year, Nancy Homer, interior design company, balance sheet show current asset of 68,000 and current liabilities of 56,000 during the current year Nancy invested 5000 cash and...
-
The account balances of Zenith Travel Service for the year ended August 31, 20Y4, are listed below. Fees earned $918,145 Office expense 211,175 Miscellaneous expense 18,365 Wages expense 440,710...
-
What are the key elements of a system investigation report?
-
The president and the controller of Toluca Transformer Company (Mexico) have agreed that refinement of the companys cost measurements will aid planning and control decisions. They have asked you to...
-
The Jeske Company had the following financial results for two recent fiscal years (in millions): 1. Suppose that Jeskes cost of capital is 11.5%. Compute the companys EVA for years 1 and 2. Assume...
-
Many churches sponsor bingo games, a tradition stemming from the time when only specific nonprofit institutions were allowed to sponsor games of chance. Reverend Donovan Dukes, the pastor of a new...
-
Which of the following is least likely to be a major focus when undertaking long-run planning for the information systems audit function? a. Identifying the sequence in which material application...
-
Which of the following is not likely to be covered within an audit charter prepared for an organization's information systems audit function? a. Information systems audit function's place within the...
-
The primary purpose of control self-assessment is to: a. Educate stakeholders about the reliability of different types of controls b. Make stakeholders aware of the differences between inherent risk,...
Study smarter with the SolutionInn App