Question
Answer the whole question part B & C is missing the Fee per visit The audiology department at Randall clinic offer many services in the
Answer the whole question part B & C is missing the Fee per visit
The audiology department at Randall clinic offer many services in the clinics patients. The three most common, along with cost and utilization data, are as follow:
service variable cost annual direct Annual number
_______ 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
a. What is the fee schedule for these services, assuming that the gold 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 $50,000 of this amount to the three services listed above. What is the fee schedule assuming that these overhead costs must be covered? (To answer this question, assume that the allocation of overhead cost to each service is made on the basis of the number of visit.)
c. 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 the overhead costs.)
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