Medic Delivery provides transportation services between doctors' offices and a hospital laboratory. The company owns three small
Question:
Medic Delivery provides transportation services between doctors' offices and a hospital laboratory. The company owns three small cars and a minivan. Each morning the company runs specific routes to the offices of various physicians and collects lab specimens that are then delivered to the hospital for testing. Upon reaching the laboratory, the driver collects the previous day's examination results, if any, and delivers the results back to the physician offices in the afternoon. Every route covers over 100 miles each morning and afternoon. The drivers take the company vehicles home at night and begin their respective routes directly from home.
When a driver picks up either a lab specimen or test result, he or she records the pickup in a \(\log\) book. Physicians are charged a fixed fee for each lab specimen or exam result that is handled by Medic personnel. If a physician has no specimens to be transported, or lab results to be delivered, there is no charge for the day.
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A. What data do the managers at Medic need to properly operate and control the business? How would this information improve quality or reduce operating costs?
B. How could the route drivers assist in improving the company's service and profitability?
Step by Step Answer:
Managerial Accounting Information For Decisions
ISBN: 9780324222432
4th Edition
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill