Required:

1. Using the organization selected, generate a budget for the next fiscal year. Set out the details of all assumptions you needed in order to build this budget.

Assumptions: a) The volume of prescription for the next fiscal year will be 56,500

b) The net revenue per prescription is anticipated to be $48

c) The anticipated cost per prescription is $38

d)The other expenses were taken from information presented in the case. Sample General Hospital Retail Pharmacy Budget Statement for year ending December 2017

Volume (No. of prescriptions) 56,5000

Net Revenue $2,712,000

Variable Expense (prescription) $2,147,000

Salaries and wages $197,760

Benefits $39,552

Materials and Supplies $14,400

Contract Services and fees $17,280

Depreciation and Amortization $15,333

Provision for Bad Debt $26,922

Misc. Expense $4,320

Total Expenses $2,462,567

Net Income $249,433

2. Use the "Checklist for Building a Budget" (Exhibit 15-2) and critique your own budget.

Required

a. Set up three worksheets that follow the format of those in Example 13A. However, in each of your worksheets make two lines for Revenue; label one as Revenue-Inpatient and the other Revenue-Outpatient. Add a Revenue Subtotal line. Likewise, make two lines for Expense; label one as Expense-Inpatient and the other Expense-Outpatient. Add an Expense Subtotal line.

b. Using the new assumptions, complete the first worksheet for "As Budgeted."

c. Using the new assumptions, complete the second worksheet for "Actual."

d. Using the new assumptions, complete the third worksheet for "Static Budget Variance."