Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As practice manager, you are asked by the owner physicians to prepare a preliminary budget for adding a school sports physical exam to the practice

As practice manager, you are asked by the owner physicians to prepare a preliminary budget for adding a school sports physical exam to the practice using the following assumptions:

  • Time frame: one (1) month before fall season starts (July 30 - ending August 30), and one (1) month before winter season starts (October 20 - ending November 20).
  • You should expect the practice to be able to complete one physical exam every 20 minutes (check-in to check-out), with physical exams offered on Tuesdays and Thursdays. The practice will dedicate two (2) exam rooms for these physicals with a physician assistant covering both rooms, assisted by a MA in each room. A practicing physician must review and sign-off on the PA exam (5 min).
  • The practice will charge 25 % over costs. Include labor +30 % fringe costs, consumable supplies of 20 % labor costs, and overhead of 10 % of labor costs. You must set the price and forecast total revenue assuming 70 % booking levels on all days.
  • Forecast revenue and expenses for this project and provide a recommendation as to whether this is a worthwhile endeavor.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To prepare a preliminary budget for adding school sports physical exams to the practice lets break d... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Government and Not for Profit Accounting Concepts and Practices

Authors: Michael H. Granof, Saleha B. Khumawala

6th edition

978-1-119-4958, 9781118473047, 1118155971, 1118473043, 978-1118155974

More Books

Students also viewed these Accounting questions

Question

1. Share your own hobbies, interests, and favorites.

Answered: 1 week ago

Question

Unirs-et-Pioductian Depreciation Required

Answered: 1 week ago