Question: Answer the whole question part B & C is missing the Fee per visit The audiology department at Randall clinic offer many services in the

Answer the whole question part B & C is missing the Fee per visit

The audiology department at Randall clinic offer many services in the clinics patients. The three most common, along with cost and utilization data, are as follow:

service variable cost annual direct Annual number

_______ per service fixed costs of visits

Basic examination $5 $50,000 3,000

Advanced examination 7 30,000 1,500

Therapy session 10 40,000 500

a. What is the fee schedule for these services, assuming that the gold is to cover only variable and direct

fixed costs?

b. Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has allocated $50,000 of this amount to the three services listed above. What is the fee schedule assuming that these overhead costs must be covered? (To answer this question, assume that the allocation of overhead cost to each service is made on the basis of the number of visit.)

c. Assume that these services must make a combined profit of $25,000. Now, what is the fee schedule? (To answer this question, assume that the profit requirement is allocated in the same way as the overhead costs.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!