Monroe Outpatient Surgery Center (MOSC) is developing an operating budget for the month ending June 30, 2014.

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Monroe Outpatient Surgery Center (MOSC) is developing an operating budget for the month ending June 30, 2014. The Center expects to perform 80 surgical procedures during the month. MOSC’s average charge (price) per surgical procedure is $ 2,500. The cost of disposable surgical supplies is $ 300 per surgical procedure. MOSC also contracts with orthopedic surgeons at a fee of $ 1,500 per surgical procedure. The monthly salaries for the Center’s receptionist, book-keeper, and two surgical nurses total $ 10,500. The Center’s occupancy costs, which include space rental, insurance, and all utilities, are $ 8,200 per month. Average monthly communication costs are $ 1,200. Office and operating room equipment was installed at a cost of $ 240,000. The equipment is expected to have a five- year life and has no salvage value. Prepare MOSC’s operating budget for the month of June 2014.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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