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5.2 The Audiology Department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data are
5.2 The Audiology Department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data are as follows: Variable Cost Annual Direct Annual Number Service per Service Fixed Costs of Visits Basic examination $5 $50,000 3,000 Advanced examination 7 30,000 1,500 Therapy session 10 40,000 500 What is the fee schedule for these services, assuming that the goal is to cover only variable and direct fixed costs? b. Assume that the Audiology Department is allocated $100.000 in total overhead by the clinic, and the department director has allocated 550,000 of this amount to the three services listed earlier. What is the fire schedule, assuming that these overhead costs must be covered in addition to the variable and direct fixed costs? (To answer this question, assume that the allocation of the $50,000 in overhead costs to each of the three services is made on the basis of the number of visits 6. Assume that these three services foust make a combined profit of $25.000. Now, what is the fee schedule? (to answer this question, assume that the profit requirement is allocated to each of the three services in the same way overhead costs)
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