Cost Behavior, High-Low Method, Pricing Decision St. Teresa's Medical Center (STMC) offers a number of specialized...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655af6127437_4896655af6122c88.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655af6173bb5_4896655af6165810.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655af61d56c1_4896655af61cc256.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655af621ef44_4906655af621938f.jpg)
Transcribed Image Text:
Cost Behavior, High-Low Method, Pricing Decision St. Teresa's Medical Center (STMC) offers a number of specialized medical services, including neuroscience, cardiology, and oncology. STMC's strong reputation for quality medical care allowed it to branch out into other services. It is now ready to expand its orthopedic services and has just added a free-standing orthopedic clinic offering a full range of outpatient, surgical, and physical therapy services. The cost of the orthopedic facility is depreciated on a straight-line basis. All equipment within the facility is leased. Since the clinic had no experience with in-patient orthopedic services (for patients recovering from hip and knee replacements, for example), it decided to operate the orthopedic center for two months before determining how much to charge per patient day on an ongoing basis. As a temporary measure, the clinic adopted a patient-day charge of $190, an amount equal to the fees charged by a hospital specializing in orthopedic care in a nearby city. This initial per-day charge was quoted to patients entering the orthopedic center during the first two months with assurances that if the actual operating costs of the new center justified it, the charge could be less. In no case would the charges be more. A temporary policy of billing after 60 days was adopted so that any adjustments could be made. The orthopedic center opened on January 1. During January, the center had 4,100 patient days of activity. During February, the activity was 4,500 patient days. Costs for these two levels of activity output are as follows: Cost Behavior, High-Low Method, Pricing Decision St. Teresa's Medical Center (STMC) offers a number of specialized medical services, including neuroscience, cardiology, and oncology. STMC's strong reputation for quality medical care allowed it to branch out into other services. It is now ready to expand its orthopedic services and has just added a free-standing orthopedic clinic offering a full range of outpatient, surgical, and physical therapy services. The cost of the orthopedic facility is depreciated on a straight-line basis. All equipment within the facility is leased. Since the clinic had no experience with in-patient orthopedic services (for patients recovering from hip and knee replacements, for example), it decided to operate the orthopedic center for two months before determining how much to charge per patient day on an ongoing basis. As a temporary measure, the clinic adopted a patient-day charge of $190, an amount equal to the fees charged by a hospital specializing in orthopedic care in a nearby city. This initial per-day charge was quoted to patients entering the orthopedic center during the first two months with assurances that if the actual operating costs of the new center justified it, the charge could be less. In no case would the charges be more. A temporary policy of billing after 60 days was adopted so that any adjustments could be made. The orthopedic center opened on January 1. During January, the center had 4,100 patient days of activity. During February, the activity was 4,500 patient days. Costs for these two levels of activity output are as follows:
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
John was recently convicted by a jury of committing fraud against his employer. After the trial, it was revealed that some key evidence against John used in trial was obtained through his employers...
-
Analyze the frame in Figure P10.20. Compute all reactions. Given: \(E I\) is constant. T 10' A -10' w = 8 kips/ft + B E 10 C 15' 11.
-
Calculations for various depreciation methods. On January 1. Year 8. assume that Luck Delivery Company acquired a new truck for $30,000. It estimated the truck to have a useful life of five years and...
-
A building contractor is preparing a bid on a new construction project. Two other contractors will be submitting bids for the same project. Based on past bidding practices, bids from the other...
-
4. Was Liebeck only 20 percent responsible for her injuries? Do you agree with the compensatory and punitive damages that the jury awarded her? If not, what would h fairer monetary award? 5.Should...
-
Use the circuit diagram below to solve all the problems on this assignment. RT = 0.02- 26V + L r1 wi 540 12 180 4V ww r5 360. 0.54V. ww T3 260 1V 14 140 ohmsV OA T6 460 0.66389V What is the total...
-
What Do You Know About Amazon Associate Program? What Would You Do To Increase Your Earnings With Amazon Associate Program? Is Affiliate Marketing And Referral Marketing One And The Same? What is...
-
As a leader, what do you think are important elements of a leadership team made up of those senior people that you will surround yourself with? Do you have (or have you had) a mentor? If so, how have...
-
What role do interorganizational relationships and alliances play in achieving strategic goals, and how do organizations manage these relationships to ensure mutual benefit and minimize risks ?
-
How do expatriate managers normally rotate into the operations of a foreign country? How long do they typically stay in the country? What are the disadvantages? How did Shane Tedjarati rotate into...
-
If you are not Asian, do you know someone well who is Asian? In what capacity do you know them (e.g., personal friend, manager, classmate, neighbor, etc.)? Do you know their ethnic origin (e.g.,...
-
How to develop a comprehensive global marketing strategy for a product , taking into account cultural, economic and political facts that may impact the international market
-
Other than DHS, what federal agencies provide terrorism-based funding for first responders?
-
How did the states respond to the terrorist threat?
-
What was the purpose of the 911 Commission? What did the Commission find?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App