Question
7.2 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
7.2 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:
Service Variable cost per service Annual Direct Fixed cost Annual Number of Visits
Basic Examination $5. $50,000 3,000
Advanced Examination 7 30,000 1,500
Therapy Session 10 40,000 500
Assume that these services must make a combined profit of $25,000. Now, what is the fee schedule? (To answer this question, assume that the profit requirement is allocated in the same way as overhead costs.)
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