Cost DATA
			Activity Data
Activity	Annual Costs	Cost Driver	ROV	EC	Total
Check-in	$ 50,000	Number of visits	5,000	5,000	10,000
Assessment	$ 75,000	Number of minutes per visit	5	10	75,000
Diagnosis	$ 250,000	Number of minutes per visit	10	15	125,000
Treatment Procedure	$ 450,000	Number of minutes per visit	10	20	150,000
Prescription	$ 2,500	Drugs prescribed per visit	0.5	2	12,500
Check-out	$ 50,000	Number of visits	5,000	5,000	10,000
Billing	$ 150,000	Number of bills per visit	1	2	15,000
Total costs	$ 1,027,500

A)Use ABC costing to calculate the total cost per visit of ROV and EC.

B) Once you have total cost per visit of each type of service, what clues do you have about how to reduce costs? Be careful to not make suggestions that may impact quality of care in search of reduced costs.