Northeast Medical Group, a family practice, has the following financial data and operational trics Number of physicians Total revenue Total operating costs Total procedures per physician Patients per physician Visits per physician %2,748,360 $1,557,615 12,353 1,941 5.333 What is the group's revenue per physician? $2,748,360/5 $549,672 a. b. What is the group's operating cost per physician? $1,577,615/5 $311,523 What is the group's total operating profit? $2,748,360 $1,577,615 $1,190,745 c. What is the group's profit per physician? Per patient? Per visit? Per procedure? $1,190,725/5 $238,149 operating profit per physician $1941 x 5 9705 patients $1,190,745/9705 $122.69 operating profit per patient 5,333 x 5 26,665 total visits1,190,745/26,665 $44.66 operating profit per visit 12,353 x 5 61,765 1,190,745/61,765 S19.28 operating profit per procedure d. Assume that the group plans to reinvest $50,000 of its profits in the practice by buying a new EKG (electrocardiogram) machine. Also, assume that the remainder of profits will be distributed equally to the group's physicians as salary. What compensation will each physician receive? e.

Northeast Medical Group, a family practice, has the following financial data and operational trics Number of physicians Total revenue Total operating costs Total procedures per physician Patients per physician Visits per physician %2,748,360 $1,557,615 12,353 1,941 5.333 What is the group's revenue per physician? $2,748,360/5 $549,672 a. b. What is the group's operating cost per physician? $1,577,615/5 $311,523 What is the group's total operating profit? $2,748,360 $1,577,615 $1,190,745 c. What is the group's profit per physician? Per patient? Per visit? Per procedure? $1,190,725/5 $238,149 operating profit per physician $1941 x 5 9705 patients $1,190,745/9705 $122.69 operating profit per patient 5,333 x 5 26,665 total visits1,190,745/26,665 $44.66 operating profit per visit 12,353 x 5 61,765 1,190,745/61,765 S19.28 operating profit per procedure d. Assume that the group plans to reinvest $50,000 of its profits in the practice by buying a new EKG (electrocardiogram) machine. Also, assume that the remainder of profits will be distributed equally to the group's physicians as salary. What compensation will each physician receive? e.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter15: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 4MAD

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