Wasatch Medical Clinic has three doctors on staff. The clinic's budget for 2010 is as follows: Required:
Question:
Wasatch Medical Clinic has three doctors on staff. The clinic's budget for 2010 is as follows:
Required:
1. Is this a static or flexible budget?
2. Prepare a flexible budget showing expected income per doctor at 22,000, 26,000, 30,000, and 34,000 total patient visits.
3. Interpretive Question: Why does the expected income per doctor increase so dramatically as the number of patient visitsincreases?
Transcribed Image Text:
Wasatch Medical Clinic Budget For the Year Ended December 31, 2010 Expected number of patient visits Average charge per patient. Total revenues 26,000 S25 $650,000 Budgeted costs: Variable costs: $ 52,000 Supplies for each patient ($2 x 26,000) Fixed costs: Utilities. Rent. S 2,400 9,600 90,000 150,000 25,000 30,000 Nurses' salaries Malpractice insurance Equipment leases Other Total fixed costs 307,000 $359,000 $291,000 Total budgeted costs Expected income. Number of doctors on staff. Expected income per doctor S 97,000
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1 This is a static budget because it is geared to only one activity level If the actual number of patient visits is greater or less than 26000 any com...View the full answer
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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