Please provide the answers in excel with he formulas and explanations. Questions 1. What is the best
Fantastic news! We've Found the answer you've been seeking!
Question:
Please provide the answers in excel with he formulas and explanations.
Questions
1. What is the best regression estimate of fixed and variable costs for ABC Clinic?
2. What are the total variable costs for Year 1 per the regression equation?
3. What are the total fixed costs for Year 1 per the regression equation?
What would be a reasonable estimate of total cost for January of Year 2?
5. With only a 5 percent risk of being wrong, would you accept without investigation a January of Year 2 actual cost figure of $13,950?
Transcribed Image Text:
Case 9.1: ABC Clinic Key concept: Estimating fixed and variable costs via simple regression BC Clinic provides a variety of basic medical services in a shopping mall location. It has extended hours on evenings and weekends, which make it a convenient place to receive basic medical care. Susanna Shuman, clinic manager, has been analyzing the clinic's financial data to try to figure out how she might improve the clinic's profitability. During the first year of its operation, the clinic, on average, charged a little over $100 per visit and was barely profitable. Susanna obtained the following monthly costs and patient numbers for Year 1: A Month Patients Total Cost January 100 $10,000 February 105 $11,000 March 110 $10,500 April 4 112 $11,500 May 110 $11,000 June 6. 114 $11,500 July 7 120 $13,000 August 8. 121 $12,500 September 9. 115 $12,000 October $12,500 10 131 November 11 125 $12,000 December 12 126 $12,500 Totals for year 1,389 $140,000 Case 9.1: ABC Clinic Key concept: Estimating fixed and variable costs via simple regression BC Clinic provides a variety of basic medical services in a shopping mall location. It has extended hours on evenings and weekends, which make it a convenient place to receive basic medical care. Susanna Shuman, clinic manager, has been analyzing the clinic's financial data to try to figure out how she might improve the clinic's profitability. During the first year of its operation, the clinic, on average, charged a little over $100 per visit and was barely profitable. Susanna obtained the following monthly costs and patient numbers for Year 1: A Month Patients Total Cost January 100 $10,000 February 105 $11,000 March 110 $10,500 April 4 112 $11,500 May 110 $11,000 June 6. 114 $11,500 July 7 120 $13,000 August 8. 121 $12,500 September 9. 115 $12,000 October $12,500 10 131 November 11 125 $12,000 December 12 126 $12,500 Totals for year 1,389 $140,000
Expert Answer:
Answer rating: 100% (QA)
X Y Month Patients Total Costs 1 100 10000 2 105 11000 3 110 10500 4 112 11500 5 110 11000 6 ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Please provide the answers in excel with formulas and explanation. Revenues: 2019 2020 Net Patient Service Revenue $1,400 $1,200 Other Revenue 200 200 Total Revenues 1,600 1,400 Expenses: Nursing...
-
Determine the breakeven volume of injections for 2016 using the following formula for the contribution margin ratio approach: Breakeven revenue = Total fixed costs + [(Total variable costs / Total...
-
Clear Lake Nursing Home defines outputs as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90,00. Present revenues and costs are presented below: Clear Lake...
-
In Exercises show that is strictly monotonic on the given interval and therefore has an inverse function on that interval. f(x) = cos x, [0, ]
-
One frequent assumption in statistical analyses is that observations are independent of one another (knowing one response tells you nothing about the magnitude of another response). How would you...
-
A tabular ore body 15 ft thick is mined full-seam height at a depth of 2,300 ft by repeated slices 20 ft wide and 5,000 ft long, so the first drive is simply a 20 ft wide tunnel from the rock...
-
The following balances come from the ledger of Hansi's Home Furniture Factory at 30 June 2025. Hansi's Home Furniture Factory financial year ends on 30 June. During the year the accountant prepared...
-
Hart, an assistant accountant with the firm of Better & Best, CPAs, is auditing the financial statements of Tech Consolidated Industries Inc. The firms audit plan calls for the preparation of written...
-
When an object is placed between the pole(P) and focus(F) of a concave mirror, the image formed is (i) behind the mirror (ii) virtual and erect and (iii) larger than the object (or magnified) M A' E...
-
1. Suppose Siscos altercation occurred while he was en route to his house during an unpaid one-hour lunch break. Would Sisco still be eligible for compensation? Why or why not? 2. Would Sisco have...
-
TTW, a Moldovian company, began business on 1 October 2020. Among its varied activities, TTW owns a building which it leases out to a third party. Its pre-tax profits for the first two financial...
-
c) What is the output of the code fragment? public class Rectangle ( int width; int length; public static void main(String[] args) { } Rectangle rl = new Rectangle (); System.out.println (rl.width +...
-
An Airline flies directly from Istanbul to Housten and numbers its coach fare classes from higher to lower as 1 , 2 and 3 . The airline has zoo seats in the coach class. The ticket prices for the...
-
Multisim allows you to put digital logic theory into practice through schematic simulations and deployment to hardware. This software acts as a verification tool to aid your understanding of digital...
-
As you will be developing your own business plan as you progress through your program, this discussion will provide you the opportunity for an in-depth preview of what business planning entails and a...
-
Improving a company's operations and supply chain is an ongoing job. New ways to make things, to move goods, and to interact with customers, along with a myriad of other opportunities, become...
-
Help Please. I am so confused. Please explain how to completethis. Thank you. 7. Preparing a cash budget Brock and Sam started to create a budget (based on last year's income and expense statement)...
-
Use critical values to test the null hypothesis H0: 1 2 = 20 versus the alternative hypothesis H0: 1 2 20 by setting a equal to .10, .05, .01, and .001. How much evidence is there that the...
-
Figure P4.2 shows the velocity of a block of wood as a function of time. The block is sliding over a horizontal surface. Describe the physical processes that led to this graph. Data from Figure P4.2...
-
Consider the two velocity-versus-time graphs shown in Figure P4.4. Are the motions represented by these curves best described as similar or as different? Is the effect of friction on the motion...
-
The velocity-versus-time graph in Figure P4.3 shows the motion of two different objects sliding across a horizontal surface. Could the change in the \(x\) component of velocity with time be...
Study smarter with the SolutionInn App