Question
From this financial information, calculate the three RVU calculations: Average and Marginal Costs per RVU, Total Average Cost, and Total Marginal cost per CPT code.
- From this financial information, calculate the three RVU calculations:
- Average and Marginal Costs per RVU,
- Total Average Cost, and
- Total Marginal cost per CPT code.
- Calculate the costs,
- Show your calculations
Use the following assumptions:
Assume that during the FY2016 year, Lovely Life LLC historical costs were $750,000 when 11,000 RVUs were produced and $950,000 when 14,000 RVUs were produced. The contract specifies that the number of RVUs per service CPT code are five (5).
High Total Fixed Costs | $950,000 |
#RVUs high point | 14,000 |
Low Total Fixed Costs | $750,000 |
#RVUs low point | 11,000 |
#RVUs per CPT | 5 |
Projected #RVUs for the coming month | 10,000 |
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
