Question: On a full-cost basis, how protable was the dialysis unit last year? Please structure your answer in the form of a contribution income statement. Dr.

On a full-cost basis, how \"protable\" was the
On a full-cost basis, how \"protable\" was the dialysis unit last year? Please structure your answer in the form of a contribution income statement. Dr. Lawrence says that it costs $425 per dialysis procedure. How did he calculate that gure? What, if anything, is wrong with his calculation? Assume that the volume this year will be 3 ,120 procedures (20 patients, 3 times per week, 52 weeks in a year). At that level of volume, how \"protable\" will the dialysis unit be this year? Be sure you calculate the new direct costs, and that you estimate, as best you can, this year's allocated (or indirect) costs. What is the unit contribution margin of a dialysis procedure? How might Dr. Newell use this number in thinking about his options? For example, how might he use it to calculate the \"breakeven volume\" of the dialysis unit? Assuming that Dr. Newell does not want Dr. Lawrence to eliminate the dialysis unit, how should be present his analysis? How do you think Dr. Lawrence will respond to this presentation

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