Question: Table 1 includes PCS's proposed budget for 2018. Using this as a basis, develop a revenue and expenses budget for each PCS center. Note that

Table 1 includes PCS's proposed budget for 2018. Using this as a basis, develop a revenue and expenses budget for each PCS center. Note that professional reading fees and laboratory expenses are variable costs that need to be allocated based on the type of visit. Generally, an occupational health visit (Categories 8 and 9 on Tables 2 and 3) including all physicals has reading and laboratory costs 1.4 times what a general medical visit incurs (Category 1, 2, or 3). For each line item in the budget, indicate whether the item is a fixed or variable expense and the basis of allocation or assignment for the budget for each center. Each center is expected to generate approximately the same profit margin. Given your analysis, will it? Should management change its expectations regarding average revenue per visit bycenter?

TABLE 1

Proposed Operational Budget for 2018
Patient Revenue 2,424,000
Deductions 198,768
Net revenue 2,225,232
Expenses
Salaries and wages 1,181,200
Staff benefits 425,230
Administrative expenses 21,500
Advertising 3,000
Collection fees 1,800
Consultants 3,750
Computer support 34,000
Equipment leases 4,100
Insurance 28,100
Laboratory 49,000
Laundry and housekeeping 13,500
Legal/audit 8,450
Medical supplies 64,750
Printing and postage 11,000
Professional fees 28,000
Rent 78,500
Repairs 3,500
Telephone 11,000
Utilities 19,200
Depreciation 73,000
Bad debt expenses 10,400
Total expenses 2,072,980
Income (loss) before taxes 152,252
Taxes 60,901
Income (loss) after taxes 91,351
NOTE:
Budget parameters Alpha Beta Total
Visits, budgeted 7,500 5,100 12,600
Average revenue per visit ($) with no increased basic visit fee 160 240

TABLE 2

Alpha Center Patient Records, August 4-9, 2017
DAY NUM ART AGE TOWN SEX FIRST INS PHY CHGE
1 1 815 23 1 2 1 1 2 120
1 2 817 64 2 2 2 1 2 120
1 3 819 34 1 2 3 1 2 96
1 4 820 45 1 2 2 1 2 124
1 5 822 17 6 2 1 1 2 120
1 6 822 56 4 1 1 8 2 288
1 7 830 19 6 1 2 2 2 120
1 8 833 7 4 1 3 1 2 96
1 9 855 56 1 2 1 1 2 120
1 10 905 32 2 2 1 1 2 128
1 11 910 34 4 1 2 1 2 120
1 12 915 23 1 2 1 9 1 80
1 13 925 21 7 2 2 9 1 80
1 14 1000 54 6 1 1 1 2 120
1 15 1012 51 1 1 1 8 2 276
1 16 1025 56 1 2 2 1 2 120
1 17 1105 49 4 1 2 1 2 126
1 18 1108 23 4 1 1 8 2 279
1 19 1203 45 2 1 2 8 2 243
1 20 1209 71 1 1 2 3 1 120
1 21 1215 71 1 1 2 3 2 140
1 22 1230 23 4 1 2 8 2 212
1 23 1245 28 1 1 2 8 2 230
1 24 1250 45 2 2 1 1 2 145
1 25 1255 47 1 2 2 1 1 120
1 26 1320 45 1 2 3 1 2 96
1 27 1345 22 2 1 1 8 2 201
1 28 1355 19 1 2 1 8 2 212
1 29 1420 34 1 2 2 9 2 80
1 30 1430 25 1 1 2 2 2 201
1 31 1435 68 1 1 2 3 2 201
1 32 1435 43 1 1 2 1 2 201
1 33 1512 3 2 1 1 1 2 120
1 34 1517 50 7 1 2 1 2 120
1 35 1537 63 2 1 2 1 2 209
1 36 1539 21 2 2 2 8 2 201
1 37 1545 56 1 1 2 9 1 80
1 38 1550 66 1 2 2 3 2 250
1 39 1555 19 1 1 1 8 2 270
1 40 1600 50 2 1 1 9 2 201
1 41 1600 43 2 1 2 9 2 201
1 42 1610 68 1 1 2 3 2 230
1 43 1625 50 2 1 2 9 2 350
1 44 1630 23 1 1 2 1 2 212
1 45 1645 18 1 1 1 1 2 208
1 46 1705 27 2 1 2 8 2 212
1 47 1740 45 2 2 2 1 2 240
1 48 1750 61 2 1 1 8 2 201
1 49 1800 57 4 2 1 1 2 120
1 50 1830 42 1 2 2 1 2 120
1 51 1830 40 1 1 1 1 2 120
1 52 1850 34 2 1 1 2 2 120
2 1 812 45 4 1 2 9 1 400
2 2 824 23 1 2 1 1 2 120
2 3 833 35 8 1 1 9 2 201
2 4 845 23 1 2 2 2 2 120
2 5 905 55 1 2 2 2 2 120
2 6 910 19 1 1 2 1 2 120
2 7 925 21 4 2 2 1 2 120
2 8 1010 33 2 1 1 8 2 201
2 9 1030 33 1 2 2 2 2 130
2 10 1055 33 2 1 1 9 1 275
2 11 1120 68 2 1 2 3 2 96
2 12 1205 61 1 2 2 8 2 201
2 13 1215 35 1 1 1 9 2 130
2 14 1215 4 1 1 1 1 2 120
2 15 1309 29 7 1 1 9 1 120
2 16 1310 25 6 2 1 1 2 120
2 17 1320 23 2 2 1 1 2 120
2 18 1400 55 8 1 1 2 2 130
2 19 1420 21 7 2 1 1 1 143
2 20 1421 21 1 2 1 8 2 240
2 21 1425 23 2 2 1 1 2 156
2 22 1507 50 2 2 2 2 2 138
2 23 1515 67 2 1 1 3 2 120
2 24 1555 4 1 1 3 2 2 145
2 25 1610 30 1 2 1 9 1 400
2 26 1620 24 2 1 1 1 2 120
2 27 1630 28 2 1 1 9 1 80
2 28 1650 37 1 1 2 8 2 201
2 29 1705 25 2 2 2 1 2 120
2 30 1720 22 1 2 1 1 2 120
2 31 1800 56 1 2 1 8 2 201
2 32 1810 77 1 1 2 9 1 300
2 33 1820 54 1 1 1 1 2 120
2 34 1825 32 1 1 2 1 2 120
3 1 801 24 2 1 1 1 2 120
3 2 810 45 1 1 2 8 2 201
3 3 825 2 4 1 1 1 2 120
3 4 835 34 1 1 1 1 2 120
3 5 845 66 1 2 2 3 2 150
3 6 915 44 1 1 1 9 1 80
3 7 920 26 4 1 1 9 1 300
3 8 950 23 1 2 1 1 2 120
3 9 1020 21 6 2 2 1 2 135
3 10 1040 25 1 1 1 1 2 120
3 11 1105 28 1 2 1 8 2 201
3 12 1130 69 1 2 2 3 2 120
3 13 1145 52 2 1 1 1 2 120
3 14 1200 50 2 2 2 8 2 156
3 15 1210 24 1 2 2 2 2 130
3 16 1245 21 7 2 3 1 2 135
3 17 1315 22 7 1 2 8 2 201
3 18 1315 21 2 2 2 8 2 250
3 19 1420 69 4 1 3 1 1 150
3 20 1450 23 4 1 2 8 2 201
3 21 1510 17 7 2 2 9 1 250
3 22 1520 14 2 1 1 8 2 201
3 23 1530 25 2 1 1 2 2 120
3 24 1600 31 2 2 3 1 2 96
3 25 1630 45 1 2 2 1 2 120
3 26 1715 55 1 1 2 1 2 120
3 27 1805 61 2 1 1 1 2 120
4 3 810 17 1 2 1 8 2 201
4 4 815 4 2 1 1 2 2 120
4 5 840 25 4 2 1 9 1 95
4 6 850 7 1 1 3 2 2 96
4 7 930 36 8 2 1 9 1 250
4 8 1000 44 2 2 1 9 1 400
4 9 1020 9 2 2 1 1 2 120
4 10 1050 44 1 2 2 8 2 201
4 11 1130 47 1 2 1 2 2 120
4 12 1205 34 4 1 1 8 2 201
4 13 1230 29 6 2 2 8 2 237
4 14 1245 28 1 2 3 2 2 140
4 15 1400 44 1 2 1 2 2 150
4 16 1430 12 1 1 2 1 2 120
4 17 1530 50 2 2 2 8 2 201
4 18 1600 23 1 1 1 1 2 120
4 19 1610 26 1 2 2 9 1 80
4 20 1620 39 2 2 2 9 1 300
4 21 1630 69 2 2 2 3 2 160
4 22 1730 30 1 2 2 1 2 145
4 23 1845 38 1 1 2 1 2 160
5 1 800 13 1 1 2 1 2 120
5 2 815 22 1 2 1 9 1 300
5 3 825 23 2 2 1 1 2 120
5 4 915 19 9 2 1 2 2 120
5 5 940 36 7 1 2 2 2 120
5 6 1000 45 2 1 1 9 1 300
5 7 1000 23 2 1 2 9 1 300
5 8 1045 60 1 1 3 2 2 96
5 9 1130 59 1 2 2 8 2 201
5 10 1215 52 4 1 1 2 2 120
5 11 1230 35 4 2 3 2 2 96
5 12 1240 21 7 2 1 1 2 120
5 13 1250 66 2 2 2 2 2 120
5 14 1310 45 2 2 1 8 2 201
5 15 1320 23 1 1 1 1 2 130
5 16 1350 21 1 2 1 1 2 150
5 17 1440 37 1 1 2 9 1 400
5 18 1510 40 6 2 2 9 1 400
5 19 1540 50 9 1 2 2 2 120
5 20 1620 66 8 2 2 3 2 130
5 21 1650 45 2 2 1 2 2 120
5 22 1715 54 2 2 2 8 2 201
5 23 1730 74 1 1 3 3 2 120
5 24 1730 3 1 2 2 2 2 120
5 25 1800 19 2 1 1 8 1 201
5 26 1820 47 2 2 1 8 1 201
5 27 1830 57 2 2 2 1 2 120
6 1 900 35 2 1 3 9 1 80
6 2 900 12 2 1 1 1 2 201
6 3 905 27 1 2 2 8 2 201
6 4 915 44 2 1 1 9 1 400
6 5 930 55 2 2 2 1 2 120
6 6 1000 23 3 1 1 1 2 120
6 7 1015 19 2 2 2 9 1 80
6 8 1015 7 7 2 2 9 2 201
6 9 1025 70 9 1 1 3 2 56
6 10 1040 24 8 1 1 9 1 80
6 11 1050 17 9 2 2 1 2 76
6 12 1100 19 2 2 2 1 2 76
6 13 1105 24 1 1 1 2 2 56
6 14 1115 16 2 2 2 2 2 76
6 15 1130 44 8 1 1 8 2 201
6 16 1145 48 2 2 1 8 2 201
6 17 1200 8 1 1 2 1 2 120
6 18 1215 76 1 1 2 3 2 130
6 19 1220 35 2 2 2 8 2 201
6 20 1230 50 1 1 1 9 1 80
6 21 1240 9 1 2 2 1 2 135
6 22 1240 23 2 1 3 1 2 120
6 23 1300 37 4 1 3 1 2 120
6 24 1315 61 5 2 2 1 2 120
6 25 1320 50 1 2 1 1 2 120
6 26 1340 72 2 1 2 3 2 120
TOTALS 189 $30,300
DAY = 1 = Monday, 2 = Tuesday, 3 = Wednesday, 4 = Thursday, 5 = Friday, 6 = Saturday
NUM = Arrival order (1 = first person to arrive)
ART = Arrival time AGE = Age in years
TOWN: 1 Middleboro 5 Statesville 9 Other
2 Mifflenville 6 Carterville
3 Jasper 7 Boalsburg
4 Harris City 8 Minortown
SEX 1 = male, 2 = female
FIRST = Is this your first ever visit to a PCS center?
1 Yes
2 No, and it is not a medically ordered return visit.
3 No, it is a medically ordered return visit
INS = Insurance coverage/payment
1 Commercial insurance
2 Cash, check, or credit card
3 Medicare
8 Workers' compensation
9 Employer pays
PHY = Physical?
1 Yes
2 No
CHARGE = Gross billed charges ($)

TABLE 3

Beta Center Patient Records, August 4-9, 2017
DAY NUM ART AGE TOWN SEX FIRST INS PHY CHGE
1 1 800 44 3 2 2 8 2 385
1 2 810 32 3 1 1 1 2 135
1 3 810 45 3 2 1 8 2 370
1 4 845 66 3 1 1 3 2 96
1 5 845 21 5 1 1 8 2 380
1 6 900 7 9 2 3 1 2 150
1 7 915 34 3 2 1 8 2 350
1 8 930 51 3 2 1 8 2 360
1 9 945 59 3 2 1 1 2 180
1 10 1000 40 3 1 1 8 2 360
1 11 1005 23 5 1 2 9 1 300
1 12 1025 32 3 2 1 8 2 310
1 13 1035 40 5 2 2 1 2 160
1 14 1110 75 5 2 2 1 2 150
1 15 1150 22 3 1 1 9 1 300
1 16 1200 19 3 1 1 8 2 420
1 17 1015 56 3 2 2 9 1 150
1 18 1220 23 3 1 1 1 2 160
1 19 1310 34 3 1 1 8 2 310
1 20 1330 25 9 1 1 1 2 150
1 21 1410 49 3 2 2 9 1 150
1 22 1410 69 3 2 1 1 2 170
1 23 1430 70 9 2 2 3 2 135
1 24 1440 44 3 1 3 8 2 96
1 25 1450 25 3 1 1 8 2 325
1 26 1500 32 3 2 1 1 2 160
1 27 1605 37 9 2 2 8 2 375
1 28 1725 40 3 1 1 8 2 300
2 1 815 23 3 1 1 1 2 190
2 2 830 19 3 2 1 8 2 280
2 3 900 25 4 1 1 8 2 345
2 4 930 45 3 2 2 1 2 150
2 5 950 56 3 1 1 1 2 140
2 6 1015 8 9 1 1 1 2 120
2 7 1050 56 3 1 2 2 1 80
2 8 1120 23 9 1 1 1 1 80
2 9 1145 50 3 1 2 8 2 340
2 10 1215 56 3 2 1 8 2 350
2 11 1230 44 5 2 2 9 1 250
2 12 1250 47 3 1 1 8 2 285
2 13 1305 56 3 2 2 9 1 250
2 14 1310 23 9 2 1 1 2 130
2 15 1345 58 5 2 2 9 1 75
2 16 1400 44 5 1 1 1 2 150
2 17 1430 12 3 1 1 1 2 150
2 18 1500 40 3 2 1 8 2 315
2 19 1520 39 5 1 2 1 2 150
2 20 1520 47 9 1 2 8 1 250
2 21 1545 50 5 1 1 8 2 250
2 22 1610 46 5 2 1 9 1 250
2 23 1630 45 3 2 1 8 2 325
2 24 1645 23 3 1 2 1 2 140
2 25 1705 48 3 1 2 1 2 150
2 26 1730 32 3 1 2 1 2 140
3 1 800 23 3 1 1 1 2 160
3 2 845 19 3 1 1 1 2 160
3 3 920 44 3 2 2 8 2 275
3 4 1030 32 3 1 2 2 1 150
3 5 1110 50 5 1 2 8 2 350
3 6 1150 43 3 2 2 9 1 300
3 7 1200 50 3 2 2 1 2 150
3 8 1240 48 3 1 2 1 1 80
3 9 1250 50 5 1 1 8 2 350
3 10 1330 9 3 2 3 2 2 96
3 11 1600 45 3 2 1 1 2 160
3 12 1640 34 3 1 2 9 1 300
3 13 1700 56 3 1 1 9 1 300
3 14 1715 75 3 1 2 3 2 125
4 1 800 44 3 2 2 9 1 350
4 2 845 46 3 1 2 8 2 375
4 3 915 48 3 1 1 1 2 240
4 4 940 40 3 1 1 1 2 260
4 5 1035 23 9 1 1 8 2 350
4 6 1050 30 9 1 1 8 2 410
4 7 1130 50 3 1 1 1 2 160
4 8 1210 27 5 1 1 3 2 160
4 9 1230 22 9 1 1 3 2 120
4 10 1245 18 3 1 1 9 1 350
4 11 1320 23 3 2 2 1 2 140
4 12 1430 69 9 2 1 3 2 225
4 13 1510 45 9 1 2 9 1 250
4 14 1530 23 3 2 2 1 2 160
4 15 1610 12 3 2 3 1 2 150
4 16 1720 35 5 2 2 9 1 300
5 1 800 23 5 1 2 9 1 280
5 2 815 29 3 2 1 1 2 160
5 3 900 40 3 2 1 9 1 300
5 4 915 48 9 1 1 9 1 300
5 5 945 66 3 1 1 8 2 360
5 6 1015 45 2 1 1 1 1 150
5 7 1030 33 3 2 3 1 2 96
5 8 1140 21 5 1 1 9 1 300
5 9 1205 19 5 2 3 1 2 200
5 10 1210 45 3 2 2 8 2 340
5 11 1240 60 3 1 2 2 2 101
5 12 1250 55 3 2 1 8 2 320
5 13 1300 14 9 2 1 1 2 140
5 14 1320 23 3 2 1 9 1 300
5 15 1340 60 3 1 2 1 2 160
5 16 1400 69 3 1 2 3 2 120
5 17 1430 45 3 2 2 8 2 340
5 18 1500 4 5 1 3 1 2 96
5 19 1520 66 3 2 1 3 2 170
5 20 1540 19 5 2 2 9 1 240
5 21 1600 27 3 1 1 9 1 240
5 22 1700 44 3 2 2 1 2 160
5 23 1710 50 9 1 1 1 2 180
5 24 1710 20 5 1 1 8 2 310
5 25 1710 38 3 1 1 9 1 260
5 26 1740 34 9 2 2 1 2 140
6 1 910 5 3 1 1 1 2 160
6 2 930 23 3 2 2 1 2 170
6 3 1040 43 3 1 2 9 1 300
6 4 1050 44 3 2 1 9 1 150
6 5 1110 11 3 1 2 1 2 120
6 6 1120 48 9 2 2 1 2 150
6 7 1140 12 3 1 3 8 2 96
6 8 1215 12 3 1 2 9 1 200
6 9 1220 56 3 1 2 9 1 200
6 10 1300 60 5 1 2 9 1 200
6 11 1310 34 3 2 1 8 2 350
6 12 1330 63 3 1 2 3 2 140
TOTALS 122 $27,177
DAY = 1 = Monday, 2 = Tuesday, 3 = Wednesday, 4 = Thursday, 5 = Friday, 6 = Saturday
NUM = Arrival order (1 = first person to arrive)
ART = Arrival time AGE = Age in years
TOWN: 1 Middleboro 5 Statesville 9 Other
2 Mifflenville 6 Carterville
3 Jasper 7 Boalsburg
4 Harris City 8 Minortown
SEX 1 = male, 2 = female
FIRST = Is this your first ever visit to a PCS center?
1 Yes
2 No, and it is not a medically ordered return visit.
3 No, it is a medically ordered return visit
INS = Insurance coverage/payment
1 Commercial insurance
2 Cash, check, or credit card
3 Medicare
8 Workers' compensation
9 Employer pays
PHY = Physical?
1 Yes
2 No
CHARGE = Gross billed charges ($)

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