Sales mix decision dr. Massy, who specializes in internal medicine, wants to analyze his sales mix to
Question:
Sales mix decision dr. Massy, who specializes in internal medicine, wants to analyze his sales mix to find out how the time of his physician assistant, consuela ortiz, can be used to generate the highest operating income. Ortiz sees patients in dr. Massy's office, consults with patients over the telephone, and conducts one daily weight-loss support group attended by up to 50 patients. Statistics for the three services are as follows: office visits phone calls weight-loss support group maximum number of patient billings per day 20 40 50 hours per billing .25 .10 1.0 billing rate $50 $25 $10 variable costs $25 $12 $5 ortiz works seven hours a day.
Based on the ranking in i, how much time should ortiz spend on each service in a day? (hint: remember to consider the maximum number of patient billings per day.) What would be the daily total contribution margin generated by ortiz?