1. Below is a table for three independent clinics. Fill in the missing data (a)- (f). You will have 6 answers to this question. Financial Data on three Independent Clinics Revenue Total Variable Costs Fixed Costs Total Costs Profit $2,000 $1,300 (b) $1,000 Clinic Spring Clinic Arizona Clinic (c) Brothers Clinic $4,000 (e) (a) (d) $600 $2,000 $1,500 (f) $2,500 $400

1. Below is a table for three independent clinics. Fill in the missing data (a)- (f). You will have 6 answers to this question. Financial Data on three Independent Clinics Revenue Total Variable Costs Fixed Costs Total Costs Profit $2,000 $1,300 (b) $1,000 Clinic Spring Clinic Arizona Clinic (c) Brothers Clinic $4,000 (e) (a) (d) $600 $2,000 $1,500 (f) $2,500 $400

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 36E

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General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: Fixed costs $1,093,754 Variable cost per inpatient day $19 Charge (revenue) per inpatient day $105 The hospital expects to have a patient load of 1,599 inpatient days next year. Assume that 18 percent of the hospital's inpatient days come from a managed care plan that wants a 27 percent discount from charges. What is the change in profit if the hospital accepts the proposal?
a small clinic treats only 10 patients. it expects operating cost per patient will be $1,800 or total $18,000. It desires an operating margin of $3600. If the clinic trates one patient as a charity case, how much must the clinic charge the 9 patients in order to reach its financial requirements?
Health-Temp Company is a placement agency for temporary nurses. It serves hospitals and clinics throughout the metropolitan area. Health-Temp Company believes it will place temporary nurses for a total of 23,500 hours next year. Health-Temp charges the hospitals and clinics 90 per hour and has variable costs of 75.60 per hour (this includes the payment to the nurse). Total fixed costs equal 321,000. Required: 1. Calculate the contribution margin per unit and the contribution margin ratio. 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 100,000. 4. What if Health-Temp had target operating income (profit) of 110,000? Would sales revenue be larger or smaller than the one calculated in Requirement 3? Why? By how much?
General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services Fixed $10,000,000 Variable cost per inpatient day 200 Charge (revenue) per inpatient day 1000 The hospital expects to have a patient load of 15,000 inpatient days next year. a. Construct the hospital’s base case projected P&L statement. b. What is the hospital’s breakeven point? c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? d. Now, assume that 20 percent of the hospital’s inpatient days come from a managed care plan that requests a 25 percent discount from charges. Should the hospital agree to the discount proposal?
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenue (10000 visits) $405,041 Wages and benefit $236,502 Rent $4,415 Depreciation $27,780 Utilities $2,845 Medical supplies $46,208 Administrative supplies $9,302 Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. What number of visits is required to break even?
The hospital where you are employed is continuing with their analysis with the goal of opening a walk-in clinic. After conducting additional research, the financial projections for the first year of operations are as follows: Revenues (from 10,000 visits): $400,000 Wages and benefits: $220,000 Rent: $5,000 Depreciation: $30,000 Utilities: $2,500 Medical supplies: $50,000 Administrative supplies: $10,000 Assume that all costs are fixed except supply costs, which are variable. Assume that the clinic will be required to pay taxes at a 30% tax rate. Respond to the following questions. Be sure to show your work for all calculations. Prepare the clinic’s projected Profit and Loss (P&L) Statement. (8 points) What number of visits is required to break even? (3 points) What number of visits is required to provide you with an after-tax profit of $100,000? (4 points)
San Juan Health Department's dental clinic projects the following costs and rates for the year 20XX.Total fixed costs: $225,000Variable costs: $60 per patientCharges: $250 per patient Using the information above, determine the break-even point in patients? Using the information above, determine the break-even point in dollars? If the clinic decided it would like to make a profit of $8,000, what is the new break-even point in patients? If the clinic decided it would like to make a profit of $8,000 at 1,226 patients, what is the new break-even point in dollars?
Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs. Priceper Unit Variable Costper Unit Units Soldper Year Cleaning $ 400 $ 220 8,500 Filling 680 660 1,200 Capping 1,550 920 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $540,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 20 percent tax rate on income. A cleaning “unit” is a routine teeth cleaning that takes about 45 minutes. A filling “unit” is the work done to fill one or more cavities in one session. A capping “unit” is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (e.g., putting crowns on two teeth counts as two units). d-1.…
Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs. Priceper Unit Variable Costper Unit Units Soldper Year Cleaning $ 400 $ 220 8,500 Filling 680 660 1,200 Capping 1,550 920 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $540,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 20 percent tax rate on income. A cleaning “unit” is a routine teeth cleaning that takes about 45 minutes. A filling “unit” is the work done to fill one or more cavities in one session. A capping “unit” is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (e.g., putting crowns on two teeth counts as two units). Required: a. Given this information, how much will Painless Dental Clinics,…
3. St Barnabas Hospital is opening a satellite office. Your financial projections for the first year of operations are as follows:Revenues (10,000) $500,000Wages and Benefits $350,000Rent 8,000Depreciation 50,000Utilities 4,500Medical Supplies 70,000Administrative Supplies 20,000Assume that all cost are fixed except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate.a. Construct the clinics projected P & L statement.Insert your response here. b. What number of visit is required to break-even?Insert your response here. c. What number of visits is required to provide you with an after-tax profit of $100,000?Insert your response here.
Below are the projected revenues and expenses for a new clinical nurse specialist program being established by a hospital. Nurses would provide education while the patient is in the hospital and home visits after patient discharge on a fee-for-service basis. Should the hospital undertake the program if its required rate of return is 12%? Year 1 Year 2 Year 3 Year 4 Total Revenue costs 100,000 150,000 200,000 250,000 700,000 150,000 150,000 150,000 150,000 600,000 (50,000) 0 50,000 100,000 100,000
Assume that the manager of the rehabilitation department of Getwell Hospital is setting the price on a new outpatient service for electrical stimulation of muscles. Here are the relevant data estimates: Variable cost per visit: $15.00 Annual direct fixed costs: $650,000 Annual overhead allocation: $75,000 Expected annual visits: 8,000 What price per visit must be set for the service to breakeven?